Quarterly Reports on Debt Management by Indian Government
Recently Indian government has released quarterly Report on Public debt management which clearly stats the current position of Indian financial crisis. The report gives an account of the debt management and cash management operations during the quarter, and attempts a rationale for major activities. The report also tries to provide detailed information on various aspects of debt management. The complete report is released publicly by Indian government and anyone can view from their official website.
The gross fiscal deficit of the Central Government for fiscal year 2012-13 (FY13) was budgeted at 5,13,590 crore (5.1 per cent of GDP) compared with 5,09,731 crore (5.8 per cent of GDP) in the provisional accounts for 2011-12. The gross and net market borrowing requirements of the Government for FY13 were placed at 5,69,616 crore and 4,79,000 crore against 5,10,000 crore and 4,36,414 crore, respectively, in FY12.
The fiscal outcome during April-August of FY13 indicates stress in the in the revenue account. Net inflows on account of foreign investment during July-August 2012 showed some improvement after remaining subdued in the first quarter of the current fiscal year.
image source : Ministry of Finance, Gov of India.
According to the reports "The total volume of Government securities transacted on an outright basis during Q2 of FY13 stood at `15.09 lakh crores, representing an increase of 16.8 per cent over `12.92 lakh crore during the preceding quarter. While the transactions in treasury bills increased by 32.9 per cent during the quarter, transaction volumes in state government securities registered a growth of 20.0 per cent."
Foreign banks continued to be the dominant trading category with further increase in their share in total outright trading activity to 33.9 per cent during Q2 of FY13 from 31.7 per cent in the previous quarter.
Although Indian government bet on reduced debt over overseas imports and exports and maintain inflation came from ‘fuel and power’ group. Whatever the action taken by the government has proven the worst for the Indian citizen this year. As government is working hard for this crisis but there are some debt relief companies which works hard with the help of government to provide the better relief over this financial changes.