Govt raised ₹3,51,000 cr through dated securities in Oct-Dec
1 min read 01 Apr 2023, 12:22 PM ISTThe report released by the finance ministry said public debt accounted for 89% of the total outstanding liabilities in December compared to 89.1% at the end of September
PremiumNEW DELHI: The government raised ₹3,51,000 crore through dated securities as against the notified amount of ₹3,18,000 crore in the borrowing calendar, according to the quarterly report on debt management for October-December released by the finance ministry on Saturday.
Repayments stood at ₹85, 377.9 crore, as per the reports.
“Weighted average yield of primary issuances hardened to 7.38% in Q3 FY23 from 7.33% in Q2 of FY23," the Ministry of Finance said.
The weighted average maturity of new issuances of dated securities elongated to 16.56 years in the third quarter of the current fiscal as compared to 15.62 years in second quarter of 2022-23.
During October- December 2022, the government did not raise any amount through the cash management bills, according to the report.
The Reserve Bank of India did not conduct open market operations for government securities during the quarter, it informed further.
The net daily average liquidity absorption by RBI under Liquidity Adjustment Facility (LAF) including Marginal Standing Facility and Special Liquidity Facility was at ₹39,604 crore during the quarter.
In absolute terms, the total liabilities, including liabilities under the ‘Public Account’ of the government, jumped to ₹1,50,95,970.8 crore at the end of December 2022. As of 30 September, the total liabilities stood at ₹1,47,19,572.2 crore.
This represented a quarter-on-quarter increase of 2.6% in Q3 FY2022-23.
The report released by the finance ministry on Saturday said public debt accounted for 89% of the total outstanding liabilities in December compared to 89.1% at the end of September.
Nearly 28.29% of the outstanding dated securities had a residual maturity of less than 5 years.
The net daily average liquidity absorption by RBI under Liquidity Adjustment Facility (LAF) including Marginal Standing Facility and Special Liquidity Facility was at ₹39,604 crore during the quarter, the report said.
With regard to the yield, the report said, the interest rate on 10-year benchmark security softened from 7.40% at the close of the quarter on September 30, 2022, to 7.33% at the close on 30 December 2022, thus softening by 7 bps during the quarter.
On 7 December 2022, the Monetary Policy Committee (MPC) decided to hike the policy repo rate by 35 bps, from 5.90% to 6.25% largely with an intention to contain inflation.
