Fund raising

Raising the money

Finance always acts as the backbone of any company. As sources of finance help the company to recover during the case of an emergency. Similarly, in this pandemic situation, government is in the need of using it to raise the money in order to make the country stable by taking decisions in order to deal with various financial sources.

 

As per the recent scenario, the government is willing to raise the money via tax-free bonds. The money which is to be raised with these bonds is expected to be Rs 10,000 crore. This money will not be raised at one instance but it will be in multiple installments. Therefore, the finance ministry has begun negotiations with the bankers on this issue of tax-free bond. This is all set to widen in the aftermath of Covid-19- induced economic disruptions and low tax collections. Government is also trying to raise temporary funds from the Central Bank through WMA i.e., ways and means advances. The government usually raises money from the debt market, but due to this pandemic situation, a target has been set of raising the money via tax-free bond.