Government Debt Rose 4% Quarter On Quarter During June-End Period

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Government’s debt has gone up marginally during the first quarter of the current fiscal

Government’s liabilities stood at Rs 1,20,91,193 crore at the end of the first quarter of the current financial year against Rs 1,16,21,781 crore at the end of the fourth quarter of 2020-21, thus showing a quarter-on-quarter rise of 4.04 per cent.

According to the quarterly public debt management report released by the Ministry of Finance for the June quarter period of the current fiscal, public debt comprised of 91 per cent of the government’s total outstanding liabilities by the end of the first quarter.

Apart from this, almost 29 per cent of outstanding dated securities showed a residual maturity of less than five years and as per the ownership pattern, commercial banks’ share was almost 36 per cent while insurance companies had a share of 25 per cent till the end of the first quarter of 2021-22.

Meanwhile in the same period, government issued dated securities worth Rs 3.46 crore and the repayment stood at Rs 1.05 crore. The weighted average maturity of newly issued dated securities stood higher at almost 17 years in June-end quarter of current fiscal, compared to 13.3 years in the fourth quarter of 2020-21.

During the June quarter of 2021-22, the Centre did not raise funds through cash management bills, the report said.

It further noted that the Reserve Bank of India initiated three open market purchase under Government Securities Acquisition Programme (GSAP 1.0). This was in addition to one special open market operation which included simultaneous purchase and sale of government securities during the June-end period of the current financial year.



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