Past experience clearly suggests that recourse to such off-budget items is not ad hoc or onetime only. The repeated recourse to issue of Government bonds has been exercised not only for fuel, food and fertilizers for financing subsidies, but also for financing deferred liabilities in regard to bank loan waivers and contribution to the capital of public sector banks.
Hence, unless there is a noticeable change in global prices or a change in policy towards recurrent subsidies and deferred liabilities, continuation of such special bonds may not be ruled out. The significant quasi-fiscal transactions to finance recurrent revenue expenditures through de facto borrowings pose challenges in managing the links between fiscal, external and monetary management.