Total liabilities (including liabilities under the ‘Public Account’) of the Government increased by 2.33% during first quarter of the current fiscal. As per provisional data released by Ministry of Finance, total liabilities surged to Rs 79,80,667 crore at end-June 2018 from Rs 77,98,772 crore at end-March 2018.
According to the data report, public debt accounted for 89.3% of total outstanding liabilities in Q1 with internal debt accounting for 83.0% of its share. Nearly 24.9% of the outstanding dated securities had a residual maturity of less than 5 years. Besides, the holding pattern indicates a share of 42.7% for commercial banks and 23.5% for insurance companies by end-March 2018.
The report also showed that G-Sec yields have shown a hardening trend in Q1 FY19 with the increase in weighted average yield of primary issuances to 7.76% from 7.34% since the last quarter reflecting the impact of both global and domestic developments such as increase in crude oil prices, rate hike by the US Federal Reserve, rising geo-political tensions, weak Rupee, rise in CPI, demand-supply imbalance for shorter-tenor securities in the country and weak demand from FPIs. Further, during Q1 FY19, the Central Government issued dated securities worth Rs 1,44,000 crore in 12 tranches as against Rs 1,68,000 crore in Q1 FY18.