Central govt debt up 2.79% at Rs82,03, 252 cr in Q2 FY19
19 December 2018
Total liabilities (including liabilities under the ‘Public Account’) of the central government, as per provisional data, increased by Rs2,22,585 crore(or 2.79 per cent) to Rs82,03,252 crore as of end-September 2018 from Rs79,80,667 crore at end-June 2018, provision figures released by the Department of Economic Affairs showed.
During Q2 of FY19, the central government issued dated securities worth Rs1,44,000 crore against Rs1,89,000 crore in Q2 of FY18. The weighted average maturity (WAM) of new issuances stood at 15.04 years in Q2 of FY 19 (14.58 years in Q2 of FY 18). The weighted average yield (WAY) of issuances for the second quarter of FY 19 was 8.01 per cent compared to 6.76 per cent in Q2 of FY 18.
The temporary cash flow mismatches were bridged through issuance of cash management bills amounting to Rs20,000 crore during the quarter. The net average liquidity injection by RBI under Liquidity Adjustment Facility (LAF), including MSF, was Rs16,097.2 crore during the quarter.
Public debt accounted for 89.3 per cent of total outstanding liabilities at end-September 2018 with the share of internal debt being 82.9 per cent. Nearly 26.6 per cent of the outstanding dated securities had a residual maturity of less than 5 years.
The holding pattern indicates a share of 41.4 per cent for commercial banks and 24.6 per cent for insurance companies by end-September 2018.
Meanwhile, G-Sec yields have shown a hardening trend in Q2 of FY19 with the increase in weighted average yield of primary issuances to 8.01 per cent from 7.76 per cent since the last quarter reflecting the impact of several developments, including an increase in crude oil prices, depreciation in the value of rupee against the US dollar and rate hikes by US Fed and the Reserve Bank of India, the release noted.