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Government Stressed Even as Liquidity was Surplus in Apr-Jun Quarter
September 05, 2017
As a result of the note-ban drive, the liquidity in the economy was surplus during the April-June quarter. However, the cash position of the government wasn’t quite well due to the difference in receipt and payment.
The department of economic affairs’ quarterly public debt management report says that the government took aid from Reserve Bank of India’s WMA (Ways and Means Advances) to deal with the temporary financial setback during Q1 of fiscal year 2017-18 resulting from low cash inflows and high front-loading of expenditure by the ministries.