New Delhi: The government’s total liabilities or the government debt crossed Rs 100 lakh crore for the first time at the end of the month June-2020.
As per the Department of Economic Affairs’ quarterly report shows that the total liabilities increased from Rs 94.6 lakh crore to Rs 101.3 lakh crore.
On Friday, the finance ministry report said that the debt roses because of the enormous pressure the global coronavirus pandemic exerted on government finances.
It also said that this increase in debt is caused by a fall in revenue collection during the pandemic.
The debt management report also shows that the central govt issued dated securities aggregating to Rs. 346000 crore in the June quarter, which is much higher than the Rs. 221000 crore a year before.
However, according to a report published in zoom news, the weighted average yield of primary issuances showed a sharp fall to 5.85% in the April-June period, compared with 6.7% in the March quarter. This reflected the impact of several developments, such as a sharp decline in crude oil prices in April, reduction in the repo rate by 40 basis points to 4% by the Monetary Policy Committee on May 22 and surplus liquidity conditions in the market.
The report also suggests that 28.6% of the outstanding dated securities had a residual maturity of lower than 5 years. In the interval underneath evaluation, industrial banks accounted for 39 percent and insurance coverage firms 26.2 percent.