Market borrowings in 2022-23 may come down if collections under the National Small Savings Fund (NSSF) are significantly higher than estimated, Economic Affairs Secretary AJAY SETH tells Asit Ranjan Mishra and Arup Roychoudhury. Seth says nothing, including a ban on cryptocurrency, is off the table since the concerns of the financial market are real. Edited excerpts:
High borrowing by the government is expected to push up bond yields and the Centre's debt-to-gross domestic product (GDP) ratio. What was the deciding factor for higher borrowing and lower drawdown from the NSSF?
When we talk about any borrowing number, it has to be seen relative to GDP. Borrowings get financed through various sources - small savings is one of them. It is