Press Information Bureau

Government of India

Ministry of Finance

06-March-2012 15:04 IST

Second Edition of the Status Paper Giving Detailed Analysis of the Government’s Debt Situation Released

          In his Budget Speech for 2010-11, the Union Finance Minister Shri Pranab Mukherjee had announced his intention to bring out a status paper giving detailed analysis of the Government’s debt situation and a road map for curtailing the overall public debt. The Finance Minister had also announced that this paper would be followed by an Annual Report on the subject. Accordingly, maiden edition of Government Debt Paper was released during 2010-11. The second edition of Status paper on Government Debt is released today. This is available on Ministry of Finance website www.finmin.nic.in and www.indiabudget.nic.in.

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DSM/SS/GN

Public debt management outlines reporting reforms and institutional steps to improve transparency and medium term debt sustainability. Public debt management explains measurement and reporting conventions separating Consolidated Fund debt and Public Account liabilities, netting certain NSSF related items and treating MSS liabilities separately because proceeds are sequestered. It emphasizes elongating the maturity profile of dated securities, relying on domestic savings and bank SLR holdings for financing, and institutionalising professional debt management through a proposed Debt Management Office. The paper also sets out NSSF reforms to align small savings rates with market yields, altered investment and repayment terms, and stress sensitive scenarios for future dated securities financing under alternative SLR and bank holding assumptions.