Speaking on the government’s fiscal management and new accounting systems, the FM emphasised the importance of keeping India “lean and well-managed” in terms of debt. She highlighted that reducing advance estimates of borrowing leads to overall benefits for the economy by minimizing unnecessary debt accumulation.
“We have already shown concrete measures to ensure I don’t need to keep borrowing and park it somewhere ,” she said, reinforcing the government’s commitment to responsible financial planning.
Key Savings Initiatives
1. Treasury Single Account (TSA): This mechanism, implemented since 2017-18, has saved over ₹15,000 crore in interest costs by optimizing cash balances and avoiding idle funds sitting in multiple accounts.
2. Single Nodal Account (SNA): Introduced in 2021-22, this initiative has saved ₹11,000 crore by consolidating unspent funds in 15 lakh bank accounts into just 4,500 accounts, reducing unnecessary interest outflows.
3. Just-in-Time Releases: By ensuring that the government borrows only when necessary, the country has avoided excessive debt accumulation and interest expenses. This approach has played a critical role in managing India’s debt-to-GDP ratio, particularly in the aftermath of Covid-19.
No Burden on Taxpayers
The FM observed these measures have resulted in significant financial efficiencies without placing any additional burden on taxpayers. “The savings generated through these initiatives are not at the expense of the taxpayers . Instead, they reflect better management of public funds,” she noted.
