Govt’s gross liabilities rise to ₹160.69lakh cr at Decend

Total gross liabilities of the government increased marginally to ₹160.69lakh crore at the end of December 2023 from ₹157.84lakh crore at Septemberend, the Finance Ministry said on Thursday. This represented a quarteronquarter increase of 1.8 per cent in the September quarter of 202324, said the public debt management quarterly report (OctoberDecember 2024).

PUBLIC DEBT

Public debt accounted for 90 per cent of total gross liabilities during the third quarter of the current fiscal year.

“During the quarter, the yield on Indian domestic bond initially rose but softened thereafter on account of decline in crude oil prices, lower than expected domestic CPI prints for October and November and news about possible inclusion of Indian Government Bonds (IGBs) in a major global emerging market index,” the

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⭘ report said. Further, an ultralong 50year Gsec was introduced to cater to the demand from longterm investors. On the other hand, US treasury yields remained volatile during the quarter mostly affected by Federal Reserve action, inflation, and employment data.

The maturity profile of outstanding government debt as on end December 2023 mirrors elongation of maturity profile of outstanding government debt, the report said. The proportion of debt (dated securities) maturing in less than one year stands at 4.1 per cent at endDecember 2023 (4.6 per cent at endSeptember 2023).

The proportion of debt maturing within 15 years at 21.8 per cent at the end of December 2023 was lower than 23 per cent at Septemberend 2023. Debt maturing in the next five years worked out to 25.9 per cent of total outstanding debt at endDecember 2023 — 5.2 per cent of outstanding stock, on an average, needs to be repaid every year over the next five years.

Thus, the rollover risk in dated securities portfolio remains low, the report added.