NEW DELHI: Total gross liabilities of the central government increased marginally to Rs 160 lakh crore at December-end quarter 2023 from Rs 157 lakh crore at end-September, 2023.
This represented a quarter-on-quarter increase of 1.8% in the third quarter (Q3) of 2023-24, as per the public debt management quarterly report. Public debt accounted for 90% of total gross liabilities during the quarter.
The yield on Indian domestic bonds experienced an initial increase during the quarter but later eased due to factors such as a drop in crude oil prices, lower-than-expected domestic CPI figures for October and November, and reports suggesting the potential inclusion of Indian Government Bonds (IGBs) in a prominent global emerging market index, said the report.
In response to demand from long-term investors, recently a new ultra-long 50-year G-sec was launched. Meanwhile, US Treasury yields exhibited volatility throughout the quarter, influenced primarily by Federal Reserves’ decisions, inflation rates, and employment data fluctuations.
As of December 2023, the maturity profile of outstanding government debt reflects an elongated structure. The percentage of debt (dated securities) maturing in less than a year decreased to 4.1% by the end of December 2023 from 4.6% at the end of September 2023, as mentioned in the report.
The percentage of debt maturing within 1-5 years stood at 21.8% by the close of December 2023, showing a decrease from 23% at the end of September 2023.
At the end of December 2023, debt maturing within the next five years represented 25.9% of the total outstanding debt, implying that an average of 5.2% of the outstanding stock needs to be repaid annually over the upcoming five years. “Thus, the roll-over risk in dated securities portfolio remains low,” said the report.
The report outlines details on public debt management and cash management operations conducted during the quarter, offering comprehensive information on different facets of debt management, as stated by the ministry.