Public debt management: back to school4 min read . Updated: 13 May 2015, 06:19 PM IST
Optimal debt management is inextricably linked with fiscal policy and it should be tackled by finance ministry
There is currently an intense public debate about the location of public debt management in India. At present, we are in limbo, with the ministry of finance recently retracting the provisions in the Finance Bill pertaining to the establishment of a separate Public Debt Management Agency (PDMA). As a result, these functions will continue to be run from the Reserve Bank of India (RBI), but the statement of finance minister Arun Jaitley leaves considerable ambiguity about when (and if) these functions will be transferred to the finance ministry’s control.
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