As the last date outlook, many are wondering whether the government will expand it in the upcoming budget 2025.
What will be expanded?
Focusing the government’s focus on female-focused financial policies, an extension or a similar plan will be a welcome step.
However, CNBC-TV18 has previously stated that this expansion is unlikely.
While sources have indicated that the review of the fiscal status will be held as part of the revised budget estimates, nothing is clear at this point. The possibility of expanding a scheme is still in the air, but the government suggests a change away from traditional small savings schemes from the fiscal point of view.
interest rate risk
The scheme offers a certain 7.5% interest rate, which can lead to a risk for the government on the fall in interest rates. This is combined with a significant change in savings patterns – where investors are turning to mutual funds and equity – Furrathar makes the chances of an expansion.
The government has already adjusted its small savings goals, reducing its estimate for FY 25 by about 11%, which can affect its decision on MSSC.
What should investors do?
With the plan ending in March 2025, investors should consider taking advantage of it, while it is still available.
Waiting for an extension can mean the current interest rate benefits, especially given the uncertainty around the future of the plan.
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