Updated Feb 03, 2021 | 07:12 IST
The government s increasing dependence on small savings schemes such as PPF and NSC to fund its annual fiscal deficit is likely to ensure that interest rates are kept intact so as not to hurt inflows Interest rates on PPF, other small savings scheme unlikely to be slashed this fiscal | Photo Credit: Thinkstock
Union Finance Minister Nirmala Sitharaman may have dashed the hopes of small investors by not increasing the annual Public Provident Fund (PPF) contribution limit but economists anticipate that interest rates paid to investors on small savings schemes won’t be reduced this year.
Over the past few years, the government has become increasingly dependent on small savings schemes such as PPF, NSC, and post office deposits etc to fund its annual fiscal deficit.