‘Big fiasco as demonetisation’: Expert flags SGB, warns of Rs 1.13 lakh crore liability surge

The debate between the SGBS of India, AK Mandhan, the Financial Planner and Sebi registered a research analyst, undermined the scheme as a “fiasco” as a demonetization and make india.

Living on Sunday to X, Mandhan claims that the flawless design of SGBs led to the unstable growth of government’s liabilities, which had 930% in the present prices of “lakhtak” in just six years.

“The poor design of SGBs led to 930% growth in the government. Liabilities in the last 6 years, which, at today’s gold price, stands 1 1st spray. He later warned:

Mandhan’s requirements are published by the recent report through printing that SGBs have led to a 930 percent increase in government liabilities by 2023-24. The report reports that the report states that by 2032 has the potential to grow 1,12 RS Rs, which goes to market scores. It was wrong to accuse the design of the SGB scheme and partly in the government’s own actions, such as until 2022.

What are SGBs?

In 2015, he was launched as an alternative to physical gold, SGBs allow individuals to invest in gold in gold, and earning 2.5% annual interest rate. The scheme is designed to reduce the rely on India on the imported gold, which corrects the country’s commercial balance. However, the government also guarantees the ransom of these bonds at the dominant market pace, considering that its obligations are raising every increase in gold prices.

The growing burden of government finance
Gold prices have increased significantly since the introduction of SGBs, in 2024, in 2024, from 26,000 to 26,000 to 26,000. This increase has led to a mass increase in expenses saved by the government. As SGBs support the sovereign warranty, taxpayers finally carry the burden of those obligations.

Mandhan’s Tweet attaches importance to this concern, gives parallels with Demonetisation and forcing in India, which has not been able to make their promises in the dispute.

However, while some economists and market analysts claim that SGBS provides a secure investment option and helps restrain physical gold, others agree that the increase in redemption can cause long-term tax risk.

Gold prices are expected to remain unstable in the conditions of unstable, global economic uncertainties, the debate on SGBs is unlikely to repay soon. So far, when Mandhan warns: