Corrigendum regarding Notification No F.FIN PF/2/2026 PF FD/345812/209
Issued by Government of The National Capital Territory of Delhi · Finance Department
Read or download the official PDF of this gazette notification issued by the Government of The National Capital Territory of Delhi on 24th August 2026. Classified under Extra Ordinary.
Executive Summary & Key Takeaways
Executive Summary The Government of National Capital Territory of Delhi has issued a corrected version of the scheme for the constitution and administration of the Consolidated Sinking Fund (CSF). The fund is established as an amortization reserve to redeem the Government’s outstanding liabilities starting from the 2026-27 financial year. Effective from August 24, 2026, the scheme mandates a five-year lock-in period for withdrawals and sets a target to build the fund corpus to five percent of total liabilities.
Key Points / Main Content
Objective and Scope
- The CSF is constituted specifically for redeeming outstanding liabilities, including internal debt and public account liabilities.
- The fund substitutes the existing CSF scheme, with all outstanding balances as of March 2026 transferred to the new fund.
- The scheme officially commenced on August 24, 2026.
Contributions and Funding
- The Government aims to build the corpus to 5% of outstanding liabilities within five years.
- Contributions can be made from General Revenue or disinvestment proceeds at the Government's discretion, with no ceiling on the number of annual contributions.
- The Government is strictly prohibited from funding its contributions through borrowings from the Reserve Bank of India (RBI).
- The fund corpus and its accrued income are kept outside the Government’s General Revenues.
Investment and Administration
- The fund is administered by the Central Accounts Section of the RBI in Nagpur.
- Accretions are invested in Government of India (GoI) dated securities, Treasury Bills, and State Government securities of other states.
- The RBI will acquire securities from the secondary market and reinvest interest income and maturing investments in multiples of Rs. 10,000.
- The Government must pay the RBI a commission of 1/8 of 1% on the fund’s turnover, or a mutually agreed rate.
Withdrawal and Utilization
- No withdrawals are permitted until the fund has completed five years from its constitution.
- Following the lock-in period, the maximum annual withdrawal is limited to the lesser of 50% of the corpus held in the second preceding financial year or the actual redemption amount due.
- The Government may use the fund as collateral for short-term accommodation under the Special Drawing Facility (SDF) from the RBI to meet temporary cash flow mismatches.
Impact Analysis
Government of National Capital Territory of Delhi Impact: The Government is responsible for ensuring steady contributions to the fund without relying on RBI borrowings and must manage its debt redemption through this structured amortization process. Action Required: Must make budgetary provisions for periodic contributions and issue necessary instructions to ensure smooth functioning and accounting of the fund.
Reserve Bank of India (RBI) Impact: Acts as the administrator and investment manager of the fund. Action Required: Must manage investment transactions, maintain a Current Account and Subsidiary General Ledger Account for the fund, and furnish investment statements to the Government every September and March.
Chief Controller of Accounts / Principal Accounts Office Impact: Responsible for the formal accounting and auditing of the fund’s assets and transactions. Action Required: Must maintain the accounts of the fund and investments in the normal course, including subsidiary accounts as directed by the Government.
Key Entities Referenced
Consolidated Sinking Fund (CSF) Scheme: An amortization fund established for the redemption of the outstanding liabilities of the Government of NCT of Delhi starting from the financial year 2026-27.
Reserve Bank of India (RBI): The central bank responsible for administering the fund through its Central Accounts Section, managing investments, and providing a Special Drawing Facility (SDF) against fund collateral.
Finance Department, Government of NCT of Delhi: The primary department of the Delhi government responsible for the constitution, administration, and budgetary contributions to the fund.
National Capital Territory of Delhi: The specific jurisdiction where this scheme is applicable and whose public debt liabilities the fund is intended to redeem.
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रजिस्ट्री स.ं डी.एल.- 33002/99 REGD. No. D. L.-33002/99
भारत सरकार
GOVERNMENT OF INDIA
एस.जी.-डी.एxलxx.G-अID.H-2x4xx0 82026-275716
SG-DLxx-ExG-2ID4E0x8x2x0 26-275716
असाधारण
EXTRAORDINARY
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 245] दिल्ली, सोमवार, अगस्ट्त 24, 2026/भाद्र 2, 1948 [रा.रा.रा.क्षे.दि. स.ं 180
No. 245] DELHI, MONDAY, AUGUST 24, 2026/BHADRA 2, 1948 [N. C. T. D. No. 180
भाग IV
PART IV
राष्ट्रीय रािधानी राज्य क्षत्रे दिल्ली सरकार
GOVERNMENT OF THE NATIONAL CAPITAL TERRITORY OF DELHI
FINANCE DEPARTMENT
(Public Finance Cell)
CORRIGENDUM
Delhi, the 24th August, 2026
No. F. FIN-PF/2/2026-PF-FD/345812/Dirsrd/239.— In this department Notification No. F.FIN-PF/2/2026-
PF-FD/345812/209 dated 29/07/2026 regarding Scheme for Constitution and Administration of the Consolidated
Sinking Fund of Government of National Capital Territory of Delhi, the complete and corrected English version may
be read as:
The Lt. Governor of Government of NCT of Delhi is pleased to constitute the following scheme to be known
as the Scheme for Constitution and Administration of the Consolidated Sinking Fund of Government of National Capital
Territory of Delhi.
6525 DG/2026 (1)2 DELHI GAZETTE : EXTRAORDINARY PART IV]
Scheme for Constitution and Administration of the
Consolidated Sinking Fund of Government of National Capital Territory of Delhi
Title of the Scheme 1 The Scheme shall be called ‘Consolidated Sinking Fund (hereinafter
referred to as ‘the Fund’) Scheme’ of the Government of National
Capital Territory of Delhi (hereinafter referred to as ‘the
Government’).
Constitution of the 2 The Fund will be constituted by the Government of National Capital
Fund Territory of Delhi for redeeming its outstanding liabilities.
Objective of the 3 The Fund is to be utilized as an Amortization Fund for redemption
Scheme of the outstanding liabilities of the Government commencing from
the financial year 2026-27.
Commencement of 4 The Fund shall come into force with effect from the date of the
the Operation of the notification. The Operation of the Scheme is as under:
Scheme
(a) The Fund shall substitute the existing fund mentioned under the
extant CSF scheme adopted by the Government.
(b) The outstanding balances of the existing fund under the extant
CSF Scheme as at end-March-2026 shall be transferred to the
Fund.
(c) 50 per cent of the outstanding corpus held in the CSF as on March
31 of the second preceding financial year, or the amount of
redemption falling due during the financial year (April – March),
whichever is less, should be reckoned for arriving at the maximum
eligible limit for withdrawal from the CSF during the year.
(d) The Fund shall not be utilized for any purpose other than redemption
of the outstanding liabilities of the Government.
(e) The State Government can avail of short-term accommodation under
Special Drawing Facility (SDF) from Reserve Bank of India
(hereinafter referred to as ‘the Bank’) against the collateral of
investment made in CSF for meeting temporary cashflow
mismatches, subject to the terms and conditions as fixed by the
Bank from time to time.
(f) The outstanding liabilities is defined to comprise both internal debt
and public account liabilities of the Government
Contributions to 5 The Government should make conscious efforts towards building
the Fund up the CSF corpus to five per cent of the outstanding liabilities
within a span of five years. There is no ceiling on such contributions
to the Fund in terms of number of times of making contributions in
a year. It is open to the Government to invest in the Fund from the
General Revenue at any time or from other sources such as
disinvestment proceeds, at its discretion. The Government shall not
fund its contribution to the Fund out of borrowings from the Reserve
Bank.
Relationship of the 6 The corpus of the Fund comprising the periodic contributions as
Fund with General well as the income accruing to the Fund shall be kept outside the
Revenues General Revenue of the Government. The Fund shall be utilized in
the manner prescribed in this Scheme.[PART IV DELHI GAZETTE : EXTRAORDINARY 3
Administration of 7 The Fund shall be administered by Central Accounts Section of
the Fund the Bank at Nagpur, (subject to such directions / instructions as the
Government may issue from time to time).
Investment of the 8 The accretions to the Fund shall be invested in Government of India
corpus of the Fund (GoI) dated Securities, Special Securities of GoI, Treasury Bills and
State Government securities of other States of such maturities as the
Bank may determine from time to time in consultation with the
Government.
Explanation
(a) The accretions to the Fund shall include the periodic
contributions and the income accruing to the Fund from
investment thereof.
(b) The Bank will make available the securities for investment by
acquiring the securities from the secondary market, without
loading any charge other than that indicated in paragraph 10.
Account 9 (a) The Bank would arrange to raise a debit to the account of the
Government maintained with it as per the advice of the
Transactions
Government.
(b) The contributions to the Fund shall be invested by the Bank in
Government Securities as indicated in paragraph 8 in multiples of
Rs.10,000/-.
(c) The periodic accretion to the Fund by way of interest income
shall be reinvested by the Bank in a similar manner, in multiples
of Rs.10,000/-.
(d) The investments held in the Fund and maturing during currency of
the scheme shall be reinvested in accordance with paragraph 8.
(e) No withdrawals will be allowed from the Fund until completion
of five years from the date of constitution of the fund.
Explanation
(a) Withdrawals may be allowed starting from the next financial year
on completion of five years from the date of constitution of the
fund.
(b) The debit to Government on account of the periodic installments
will be accounted under the major head 8222 Sinking Funds; Sub
Major Head – 01 Appropriation for reduction of avoidance
of debt; Minor Head – 101 Sinking Funds. On the maturity of
the loan, the balance outstanding under the head 8222 Sinking
Funds; Sub Major Head – 01 Appropriation for reduction of
avoidance of debt; Minor Head – 101 Sinking Funds will be
credited to the head 8680-00-101 Ledger Balance Adjustment
Account.
(c) The Bank shall scroll to the Government the debit on account of
investment less the incidental charges in the usual course.
However, in order to ensure that the investment transactions of
the Fund do not get mixed up with other transactions, these will
be indicated distinctly in separate scrolls.
(d) The Bank shall arrange to collect interest on the investments and
credit the same to the Fund on the due dates.
(e) On the maturity of the securities, the Bank shall arrange to4 DELHI GAZETTE : EXTRAORDINARY PART IV]
redeem the securities. In case of premature disinvestment to meet
the liability on account of the claims to be paid, the Bank will
decide on the securities to be liquidated and sell the securities at
the ruling price and credit the amount realized, less incidental
charges, to the Fund. If these securities are in loss, Bank may in
consultation with the Government decide on the securities to be
liquidated. As in the case of debit scrolls, the Bank shall use
separate scrolls for the receipts.
(f) The provision for expenditure on account of the periodic
contributions shall be made in the Budget of the Government
under the relevant head. The extent of expenditure to be financed
from the Fund shall be withdrawn from the Fund by the disposal
of the investment.
(g) The Bank shall open a Current Account and Subsidiary General
Ledger Account in the name of the Fund and furnish to the
Government as at the end of September and March each year, a
statement showing the details of investments.
Service charges for 10 The Government shall pay to the Bank a commission at the rate
administration of the of 1/8 per cent of one per cent on the turnover of the Fund or at
Fund the rate to be mutually decided from time to time.
Accounts and Audit 11 The accounts of the Fund and the investments shall be
maintained by the Chief Controller of Accounts / Principal
Accounts Office of the State in the normal course. The Bank will
maintain subsidiary accounts in such manner and details as may
be considered by the Government in consultation with the Chief
Controller of Accounts / Principal Accounts Office.
Savings 12 The Government shall issue instructions relating to the
provisions of the Scheme as may be considered from time to time
to enable smooth functioning of the scheme. In case of any
difficulty in the operation of any provision of Scheme, the
Government may, if satisfied, relax the provisions.
By Order and in the Name of the Lt. Governor of
the National Capital Territory of Delhi,
SANTOSH D. VAIDYA, PR. Secy. (Finance)
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.