These bonds are considered part of the government’s borrowing, and their liabilities are calculated based on the market price of gold at the time of estimate preparation.
The current value of outstanding SGBs held by the government is estimated to be Rs 69,998 crore, based on 131 tonnes of gold.
The provision for SGB liabilities in FY25 has been revised upwards to Rs 96,136 crore, an increase of Rs 26,138 crore. Experts attribute this increase to the inclusion of bonds worth 40-45 tonnes of gold.
SGBs have proven to be a popular investment due to their guaranteed return of 2.5% and exemption from capital gains tax on maturity.
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