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Total govt liabilities rise to Rs 91 lakh crore for Q2

Total govt liabilities rise to Rs 91 lakh crore for Q2

The Centre's total liabilities including those under the 'public account' increased to Rs 91.01 lakh crore at end-September from Rs 88.18 lakh crore at end-June this year, official data on public debt showed on Monday.

Accordingly, public debt accounted for 90.2 per cent of total outstanding liabilities at end-September 2019.

"Nearly 29.1 per cent of the outstanding dated securities had a residual maturity of less than 5 years," the statement said.

"The holding pattern indicates a share of 39.7 per cent for commercial banks and 24.9 per cent for insurance companies at end-September 2019."

Additionally, the data revealed that government securities' (G-Sec) yields softened in Q2 of FY20. The weighted average yield of primary issuances declined to 6.93 per cent from 7.21 per cent in Q1 of FY20.

Softening of yields reflected the impact of several developments, the statement said, including downward revision of fiscal deficit target, policy rep o rate cut in August, lower target range for Federal Funds Rate, benign CPI-based inflation rates and higher surplus transfer than budgeted by the Reserve Bank and surplus liquidity conditions in the market.

"Central government dated securities continued to account for a major share of total trading volumes in the secondary market, with a share of 85 per cent in total outright trading volumes in value terms during Q2 of FY20," the statement said.

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