The total debt of the government increased by 6.7 per cent in the second quarter ended September 2013.
The total public debt (excluding liabilities under the ‘Public Account’) of the government increased to Rs 45,80,472 crore at end-September 2013 from Rs 42,92,870 crore at end-June 2013. This represented a quarter-on-quarter increase of 6.7 per cent compared with an increase of 4.4 per cent in the previous quarter, an official statement said.
Internal debt constituted 90.8 per cent of public debt, compared with 90.6 per cent at the end of the previous quarter, it said. Internal debt constitutes government borrowing from the market to bridge fiscal deficit for the current fiscal.
The gross fiscal deficit of the the government in budget estimates 2013-14 was placed at Rs 5,42,499 crore (4.8 per cent of GDP) as against Rs 5,20,925 crore (5.2 per cent of GDP) in the revised estimates for 2012-13.
The gross and net market borrowing requirements of the government in at Rs 5,79,009 crore and Rs 4,84,000 crore, respectively.
About 31 per cent of outstanding dated securities have a residual maturity of up to 5 years compared with about 34 per cent a quarter ago, reflecting a decline in the rollover risk in the debt portfolio.
In the secondary market, it said, bond yields went-up during the quarter mainly due to capital outflows from debt market triggered by uncertainty regarding Quantitative Easing (QE) programme of the US Federal Reserve and subsequent monetary tightening by RBI to support the rupee as well as rise in inflation rate.
Bond yield curve steepened in the above 10-year maturity segment, while it remained flat in the below 10 years maturity segment, it said.
Trading volumes declined during the quarter amidst rising yields and uncertainty regarding economic outlook, it added.