National Small Savings Fund

Why in news?

The Delhi government has sought to borrow Rs 10,000 crore from the National Small Savings Fund (NSSF) for the current financial year 2024-25.

National Small Savings Fund:

• A ‘National Small Savings Fund’ (NSSF) has been established in the public account of India since the year 1999.
• The National Small Savings Fund is a new sub-sector in the list of major and minor heads of government accounts in India.
  • All small savings collections are deposited in this fund.
• All withdrawals under small savings schemes by depositors are made from the amount deposited in this fund. The balance in this fund is invested in Central and State Government securities.
  • The investment pattern is as per the norms fixed by the Government of India from time to time.
• The Fund is administered by the Government of India, Ministry of Finance (Department of Economic Affairs) under the National Small Savings Fund (Conservation and Investment) Rules, 2001 made by the President under Article 283(1) of the Constitution.
• The objective of the NSSF is to segregate small savings transactions from the Consolidated Fund of India and to ensure their conduct in a transparent and self-sustaining manner.
  • Since the NSSF operates in the public account, its transactions do not directly affect the fiscal deficit of the Union.
• As an instrument in the public account, balances under the NSSF are direct liabilities and form a part of the outstanding liabilities of the Union.
  • NSSF flows affect the cash position of the Union Government.