Government debt has exceeded Rs 100 lakh crore for the first time

91.1% accounted for public debt out of total outstanding liabilities at the end of June.

The liabilities of the central government rose to Rs 101.35 crore in June, for the first time ever. The outstanding debt (including Public liabilities), in end-March, stood at Rs 94.62 lakh crore. The debt has increased by Rs 6.73 lakh crore, in the April-June, a finance ministry report said on Friday. The report portrayed the pressure of the novel coronavirus on government finances.

91.1% accounted for public debt out of total outstanding liabilities at the end of June.

On debt management, the report showed that the Centre to rise above the deficit, issued dated securities of Rs 3,46,000 crore in the June quarter, higher than Rs 2,21,000 crore of the previous year. However, the weighted average yield of primary issuances showed a fall to 5.85 per cent in April-June, compared with 6.7 per cent in the March quarter.

The debt increment reflects the reduced repo rate of 40 basis points to 4% by the Monetary Policy Committee in May and the decline in crude oil prices in April.

Weighted average maturity of the dated securities in June was lower at 14.61 years against 16.87 years in the previous months of March, April and May. Approximately, 28.6% of the outstanding dated securities had a residual maturity of fewer than 5 years.

 

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