Delhi Government Creates Fund to Redeem Outstanding Liabilities

The Delhi government has created a special savings fund.

This fund is called a sinking fund.

The government will start using it in the current financial year.

The money can only be used to repay the government’s outstanding liabilities.

Outstanding liabilities are amounts the government still needs to pay.

The fund cannot be used for other purposes.

Sinking funds help governments prepare to pay long-term debts.

The information was reported by PTI.