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Fiscal prudence helps govt save ₹75,000 crore

Financial Express Kochi

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February 17, 2025

THE CENTRE HAS managed to save around ₹75,000 crore in interest cost due to its focus on transparency and prudent fiscal management between FY20 and FY24 which moderated yields of the government securities (G-secs).

- Prasanta Sahu

The weighted average yield of fresh borrowing of the Centre declined from a high of 8.42% in 2013-14 to 6.96% in 2024-25 as of February 10, 2025. The yield reduction-induced saving was huge around ₹75,000 crore during FY20 and FY24, an official told FE.

The interest saving helped the Centre contain the committed revenue expenditure, which is already very high.

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