Government in trouble ! Total debt liability increased to Rs 101.3 lakh crores

by amolwarankar
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New Delhi: The total liabilities of the Government of India Libalities increased to Rs 101.3 lakh crore by the end of June 2020. A year ago, at the end of June 2019, the government’s total debt was Rs 88.18 lakh crore. According to the quarterly report of Public Debt Management released on Friday.

The public debt accounted for 91.1 percent of the government’s total dues at the end of June 2020. The liability of the government has increased to 101.3 lakh crore by the end of June 2020, in March 2020, the debt was 94.6 lakh crore rupees. Which has been steadily increasing since Coronavirus.

The report claimed it has residual maturity period of paying 28.6 percent of the outstanding dated securities is less than five years. In the period under review, commercial banks accounted for 39 percent and insurance companies 26.2 percent.

The central government issued securities worth Rs 3,46,000 crore during the first quarter of the current financial year, compared to Rs 2,21,000 crore in the same period a year ago.

According to data from the Public Debt Management Cell (PDMC), the average weighted maturity of the new issue was 16.87 years in the fourth quarter of the previous financial year, which has now come down to 14.61 years. The central government raised Rs 80,000 crore by issuing a cash management bill during April-June 2020.

The gross fiscal deficit (GFD) of the Central Government for 2020-21 was budgeted at Rs 7,96,337crore or 3.5 per cent of GDP as compared to the revised estimate of Rs 7,66,846 crore (3.8 per cent of GDP) and the provisional estimate of Rs 9,35,635 crore (4.6 per cent of GDP) for 2019-20.

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