The government’s overall liabilities grew to Rs 147.19 lakh crore at the end of September from Rs 145.72 lakh crore at the end of June this fiscal year, according to the most recent data on public debt.
In percentage terms, it represents a 1 per cent growth quarter on quarter in the second quarter of 2022-23.
According to the finance ministry’s quarterly report on public debt management, public debt stood for 89.1 per cent of total gross liabilities on September 30, 2022, up from 88.3 per cent on June 30. Also, about 29.6 per cent of outstanding dated securities had a residual maturity of less than 5 years.
The central government raised Rs 4,06,000 crore through dated securities during the second quarter, compared to the stated amount of Rs 4,22,000 crore in the borrowing calendar, while repayments were Rs 92,371.15 crore, according to the report.
The weighted average yield of primary issuances increased to 7.33 per cent in Q2 FY23 from 7.23 per cent in Q1 FY23, according to the report, which also stated that the weighted average duration of new issuances of dated securities was lower in Q2 at 15.62 years compared to 15.69 years in Q1.
The central government raised no funds through Cash Management Bills from July to September 2022. During the quarter, the Reserve Bank did not conduct Open Market operations on government securities.
The RBI’s net daily average liquidity absorption under the Liquidity Adjustment Facility (LAF), which includes the Marginal Standing Facility and the Special Liquidity Facility, was Rs 1,28,323.37 crore during the quarter, according to the report.
The yields on government securities in the secondary market stiffened in the short end of the curve due to concerns about near-term inflation and liquidity, whereas yields softened for longer-term assets during the second quarter, according to the report.
From July to September 2022, the central government raised no cash through cash management bills.
The Reserve Bank did not conduct open market operations on government securities throughout the quarter.
According to the report, the RBI’s net daily average liquidity absorption under the Liquidity Adjustment Facility (LAF), which includes the Marginal Standing Facility and the Special Liquidity Facility, was Rs 1,28,323.37 crore during the quarter.
Rates on government securities in the secondary market stiffened towards the short end of the curve due to concerns about near-term inflation and liquidity, while yields on longer-term assets flattened.
