Govt debt crosses ₹100 lakh crore for the first time.

The central government's total debt crossed the ₹100 lakh crore mark for the first time at the end of the June quarter.

According to a quarterly report by the Department of Economic Affairs, the government's total liabilities increased by ₹6.73 lakh crore or 7.1% against a 0.8% increase in the previous March-end quarter, totaling it to ₹101.3 lakh crore from that of ₹94.6 lakh crore in the last quarter.

Out of the total outstanding liability at the end of June, public debt made up for 91.1%. Approximately, 28.6% of the outstanding dated securities had a residual maturity of fewer than 5 years and the ownership pattern indicated a share of 39% for commercial banks and that 26.2% for insurance companies.

Centre issues securities worth over ₹3 lakh crore.

The finance ministry's quarterly report also showed the Centre issuing dated securities aggregating ₹3,46,000 crore in the current quarter which was much higher than the ₹2,26,000 crore issued during the previous year.

The RBI also conducted a special open market operation involving simultaneous buying and selling back of government securities for ₹10,000 crores each during the June quarter.

“The net average liquidity absorption by RBI under Liquidity Adjustment Facility (LAF), including Marginal Standing Facility and Special Liquidity Facility, was 4,51,045 crore during the quarter,” reports said.

The reports also showed that the Central government dated securities continued to account for a major part of total trading volumes in the secondary market with a share of 74% in total outright trading volumes in value terms during the previous quarter.

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