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India’s public debt increases by 1.22% in Q3 FY18
Mar-16-2018

The Public Debt (excluding liabilities under the Public Account) of the central government increased to Rs 66.61 lakh crore in the October-December quarter (Q3FY18), up by 1.22% over the previous quarter. According to the report on debt management released by the finance ministry, the government’s debt was Rs 65.80 lakh crore at the end of the previous quarter of the fiscal ended September. It noted that internal debt constituted 93.1% of public debt as of December 2017, while marketable securities accounted for 82.6%.

As per the report, during the third quarter, the government issued dated securities worth Rs 1,64,000 crore, lower than Rs 1,89,000 crore in the second quarter of fiscal 2016-17, thus leading to cumulative issuance of Rs 5,21,000 crore (87.0% of 2017-18 RE) among others. Besides, it highlighted that the weighted average maturity (WAM) and weighted average yield (WAY) of dated securities issued during Q3 of FY18 was 14.09 years and 7.04%, respectively.

The report further pointed out that the liquidity conditions in the economy remained comfortable and continue to be in surplus mode during the quarter. It noted that the cash position of the government during the third quarter was also comfortable and as a result the government did not resort to WMA from the Reserve Bank of India (RBI). It added that the trading volume of government securities on an outright basis during the Q3 FY18, also witnessed a decline of 21.6% over the previous quarter.

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