Budget Byte: National Small Savings Fund to facilitate off-Budget spending?

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The government’s began harnessing funds from outside the Budget to service its Budget commitments since 2016-17. The size of this initiative has grown more than two-fold in a few years, and now nears 1% of gross domestic product. What began with food security, off-Budget financing now caters heavily to a range of core spending areas.

And in all likelihood, off-Budget spending may remain high, or rise, in 2021-22. The reason: the National Small Savings Fund, which is the biggest source for such spending, is growing faster than ever this year. In a year when average incomes have not grown much, people have poured money into savings for social security.

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