New Delhi, March 21: Finance Minister P. Chidambaram today said the tight liquidity in the banking system was mainly because of advance tax payments and it would ease over the next few days as government departments spend money.

“The tight liquidity is mainly due to advance tax payments. It will be alright in a few days as the ministries and departments start spending money,” Chidambaram said on the sidelines of the release of a report by UNEFCAP.

The government has collected around Rs 40,000 crore in advance tax payments in the last quarter ended March 15.