Finance Ministry report: Debt on the government has crossed Rs 128 lakh crore, the share of public debt in the total liability has increased to 91.6%

Posted on 29th Mar 2022 by rohit kumar

The total debt of the central government increased by 2.15% to Rs 128.41 lakh crore in the December quarter of 2021-22. There was a total liability of Rs 125.71 lakh crore in the July-September quarter. During this, the government paid off loans worth Rs 75,300 crore. The Finance Ministry's report released on Monday said that the share of public debt in the total liabilities increased to 91.6% in the December quarter, compared to 91.15% in the September quarter.

 

 

During this period, the government issued a total of 2.88 lakh crore debt securities. Debt securities worth Rs 2.83 lakh crore were issued in the September quarter. The share of commercial banks in these securities declined to 35.40 percent as against 37.82 percent in the September quarter. Of the total debt securities issued in the December quarter, 25% have maturities of less than five years.

 

 

RBI's share reduced

 

The share of insurance companies and provident funds stood at 25.74 percent and 4.33 percent, respectively, in the October-December quarter. The share of mutual funds stood at 3.08 percent and that of RBI at 16.92 percent. The central bank's share declined in the December quarter as compared to 16.98 percent in the September quarter, the report said.

 

Retail inflation increased difficulty ...

 

On the domestic front, the market remained under pressure in the third quarter after the Reserve Bank stopped its plans to acquire securities. Fears of rising additional borrowings and inflation also added to the difficulties.

 

high interest in government securities

 

The Finance Ministry said that the interest on government securities with a maturity of 10 years has increased. Interest on this was received at the rate of 6.45 percent in the December quarter, as against 6.22 percent in the September quarter. RBI's decision to keep the repo rate unchanged at 4 percent has supported government securities with a 10-year maturity.

 

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