DIFFERENCES BETWEEN AD-HOC TREASURY BILLS AND WMA (WAYS AND MEANS ADVANCES)

WMA would not be a source of financing Budget Deficit. It is only a mechanism to cover day-to-day mismatches in receipts and payments of the Government.WMA will also not be shown as a source of financing in the Budget estimates.

▪️ Secondly, limits on WMA will be fixed and any excess withdrawal by Government beyond the limit will become permissible for not more than 10 consecutive working days.

▪️ Thirdly, WMA will be charged at market related interest rate i.e.Repo rate.