To minimize government debt, the Centre may discontinue the issuing of Sovereign Gold Bonds beginning in FY26, as the policy has outlived its goal of lowering physical gold imports.
The finance ministry is considering stopping the issuance of SGBs beginning with the next fiscal year (2025-26) due to the government’s responsibility to repay investors and make monthly interest payments, which increases the government’s liability and fiscal burden.
The government has chosen to reduce the debt-to-GDP ratio over time beginning in FY27, making the scheme superfluous.
