According to the most recent public debt management report, the government liabilities rose by 2.6 percent during Q3 FY23 to Rs 150.95 lakh crore in the quarter ending in December from Rs 147.19 lakh crore in the three months ending in September 2022.
The rise is due to a 2.6% quarterly growth between October and December 2022–2023. At the end of December 2022, the government’s total obligations, including those under the “Public Account,” increased to Rs 1,50,95,970.8 crore.
The total liabilities were Rs 1,47,19,572.2 crore as of September 30. According to the report issued by the finance ministry on Saturday, public debt represented 89% of all outstanding liabilities at the end of the third quarter of 2018, up from 810.1% at the end of September.
The residual maturity of almost 28.29% of the outstanding dated securities was less than 5 years. According to the statement, the Centre raised a sum through dated securities valued at Rs 3,51,000 crore during Q3 of FY23, as opposed to the amount of Rs 3,18,000 crore that was announced in the borrowing calendar. According to the report, Rs 85,377.9 crore that was due for redemption during the quarter was paid out on time.
It further stated that the weighted average yield of primary issuances grew from 7.33 percent in Q2 of FY23 to 7.38 percent in Q3 of FY23.
In comparison to Q2 of FY23, the weighted average maturity of newly issued dated securities increased to 16.56 years in Q3 of FY23. It stated that no money was raised by the government through the Cash Management Bills between October and December 2022.
Throughout the quarter, the Reserve Bank did not engage in open market transactions involving government securities. According to the report, the RBI’s net daily average liquidity absorption for the quarter under the Liquidity Adjustment Facility (LAF), which includes the Marginal Standing Facility and Special Liquidity Facility, was Rs 39,604 crore.
According to the study, the yield on the benchmark asset with a 10-year maturity decreased over the quarter, falling from 7.40% at the end of the third quarter on September 30, 2022, to 7.33% at the end of the third quarter on December 30, 2022. The Monetary Policy Committee (MPC) made the decision on December 7, 2022, to increase the policy repo rate by 35 basis points, from 5.90% to 6.250%, primarily with the goal of containing inflation.
The Central Bank raised the important benchmark policy rate by 25 basis points, or 0.5%, to 6.5% on February 8. Sticky-core inflation was cited as the reason for the increase.
