The central government on Thursday, September 21, said there is no distress among common households after a RBI report said the net financial savings of households have crashed to a nearly five-decade low of 5.1 per cent of GDP in fiscal 2022-23. “Lately, critical voices have been raised with respect to household savings and its overall effect on the economy. However, data indicates that changing consumer preference for different financial products is the real reason for household savings and there is no distress as is being circulated in some circles,” said the Union Finance Ministry. The RBI had also said financial liabilities of households had shot up by 5.8 per cent of GDP in 2022-23 as compared with 3.8 per cent in 2021-22 which indicated that part of the consumption was being financed by loans. Putting forward the “correct position with true facts and right inferences with respect to household savings”, the Ministry said there was no big difference in financial assets and liabilities of households. “Between June 2020 and March 2023, the stock of Household Gross Financial Assets went up by 37.6 per cent, and the Stock of Household Gross Financial Liabilities went up by 42.6%—no big difference between the two,” it said.