Financial Repression Tracker

Rules that steer savings into government debt or hold returns below inflation, country by country.

Hold · Central bank financing

Treasury overdrafts and ways and means advances

What it is
The central bank lends directly to the Treasury through an overdraft or temporary advance facility, commonly subject to revenue-based ceilings and repayment deadlines.
Why it counts
Money creation bridges government financing needs without first obtaining voluntary savings at market yields.

When it was in force

  • United Kingdom: 2008 → 2020, historical; the rule may be older than the cited document
  • India: 1997 → now, in force; the rule may be older than the cited document
  • Philippines: 2020 → 2022, historical

3 examples

  1. United Kingdom

    2008 → 2020Historical

    The rule may be older than the cited document · As cited: 2008; 2020 extension

    The government had drawn £19.9 billion in 2008 and retained an overdraft facility whose availability was temporarily enlarged in 2020.

    Ways and Means facility; HM Treasury–Bank of England temporary-extension announcement of 9 April 2020Primary source
    “the facility which enables sterling cash advances from the Bank to the government.”

    bankofengland.co.uk (opens in a new tab)Checked: quote matched on the page by script

    United Kingdom today: index 44.4

  2. India

    1997 → nowIn force

    The rule may be older than the cited document · As cited: 1997-present (WMA under RBI Act s.17(5))

    The RBI provided central and state governments with temporary advances and overdrafts against mismatches in receipts and expenditure.

    Reserve Bank of India Act 1934, section 17(5); Ways and Means Advances arrangementsPrimary source
    “Extended as Ways and Means Advances (WMA) & Overdraft (OD) to tide over temporary mismatches in their receipts and payments.”

    rbi.org.in (opens in a new tab)Checked: quote matched on the page by script

    India today: index 60.6

  3. Philippines

    2020 → 2022Historical

    The government used successive short-term BSP advances during the pandemic and repaid the remaining balance in May 2022.

    Republic Act No. 7653, section 89; BSP provisional advances to the national governmentPrimary source
    “The provisional advances is a temporary measure under Section 89 of Republic Act (RA) No. 7653”

    dof.gov.ph (opens in a new tab)Checked: quote matched on the page by script

Examples and their dates reviewed .

Further reading

7 more on central bank financing