Government outstanding debt swells 5.6% to ₹107.04 trillion in Q2
Public debt accounted for 91.1% of total outstanding liabilities at end-September 2020, as per the latest quarterly report on public debt management
PremiumNEW DELHI : Total liabilities of the government increased by 5.6% to ₹107.04 lakh crore at end-September 2020, according to official data on public debt.
At the end of the first quarter, the outstanding total debt of the government stood at ₹101.3 lakh crore. The 5.6% quarter-on-quarter increase reflects pressure on revenue collection and rising expenditure due to the COVID-19 crisis.
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Public debt accounted for 91.1% of total outstanding liabilities at end-September 2020, as per the latest quarterly report on public debt management.
The weighted average yield on primary issuances of dated securities showed further moderation to 5.80% in Q2 of FY21 from 5.85% in Q1 FY21, it said.
During Q2 FY21, 13 tranches of auctions were held for issuance of dated securities aggregating to ₹4,20,000 crore, which was slightly more than the pre-announced calendar because of exercising of greenshoe option, it said.
The central government issued dated securities worth ₹3,46,000 crore in the first quarter as against ₹2,21,000 crore in the same period a year ago.
The ownership pattern of central government securities shows that the share of commercial banks stood at 38.6% at end-September 2020, lower than 40.4% at end-March 2020.
"The share of insurance companies and provident funds at end-September 2020 stood at 25.3% and 4.8%, respectively. The share of mutual funds increased from 2.0% at end-June 2020 to 2.4% at end-September 2020," it said.
During Q2, yields on government securities hardened due to apprehension about the Centre further raising the borrowing from revised target of ₹12 lakh crore amid the strained fiscal position, MPC decision to keep policy rate unchanged in its meeting held on August 4, geo-political issue with China and higher retail inflation data, it said.
The yield on 10-year benchmark security opened at 5.84% at the beginning of the quarter and closed at 6.02% at end of the quarter in September.
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