Liquidity position will improve soon: FM

New Delhi, Mar 21 (UNI) Finance Minister P Chidambaram today was hopeful that the liquidity crunch will ease in the days to come, saying that the current cash squeeze in banking system was due to the quarterly advance tax payments.

''The Ministries and Departments will start spending thus pumping in more liquidity,'' Mr Chidambaram told reporters on the sidelines of a function.

An outflow of Rs 30,000 crore is estimated with companies withdrawing funds to pay advance tax for the financial year ending on March 31.

UNI