The government's total debt increased by 2.6 per cent to over Rs 46 lakh crore in the third quarter ended December, compared to the previous three months of the current financial year.
The total public debt (excluding liabilities under the 'Public Account') of the government increased to Rs 46,06,350 crore at end-December 2013, from Rs 44,88,905 crore at end-September 2013.
This represented a quarter-on-quarter increase of 2.6 per cent compared. The debt had increased by 4.6 per cent in the July- September quarter, an official statement said.
Internal debt constituted 90.9 per cent of public debt in Q3, 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 government in Budget Estimates 2013-14 was placed at Rs 5.42 lakh crore (4.8 per cent of GDP) as against Rs 5,20 lakh crore (5.2 per cent of GDP) in the revised estimates for 2012-13.
As per the Interim Budget 2014-15 presented on Monday, the gross and net market borrowing requirements of the government is at Rs 5.63 lakh crore and Rs 4.53 lakh crore, respectively.
This is lower than Rs 5.79 lakh crore and Rs 4.84 per cent gross and net market borrowings estimated in Budget 2013-14.
About 30.2 per cent of outstanding dated securities have a residual maturity of up to 5 years, compared with about 31.2 per cent a quarter ago, reflecting a decline in the rollover risk in the debt portfolio.
"Thus, the rollover risk in the debt portfolio continued to be low," the statement said.
In the secondary market, it said, bond yields which softened initially on account of reduction in the marginal reduction facility (MSF) rate as well as introduction of term repo auctions, ended the quarter at higher level due to tight liquidity condition and continued supply pressure abetted by fears of a sooner-than-anticipated Fed tapering.
Bond yield curve flattened during the quarter in above 10-year maturities, while steepening in maturities below 10 years segment, it said.
Trading volumes declined during the quarter amidst rising yields and uncertainty regarding economic outlook as well as exchange rates, it added.