Public debt dips marginally to Rs 55.73 lakh cr in Q4 FY16

India's public debt declined marginally to Rs 55.73 lakh crore at the end of March 2016, showing a quarter-on-quarter reduction of 0.04 percent.

The debt (excluding liabilities under the Public Account) of the government was Rs 55.75 lakh crore at the end of December.

Internal debt constituted 92.0 percent of public debt, as compared with 92.3 percent in the previous quarter, a Quarterly Report on Debt Management released by the Finance Ministry said today.

With regard to domestic borrowing, it said Gross and Net Market borrowing requirements of the Government for 2015-16 were revised lower to Rs 5,85,000 crore and Rs 4,40,608 crore, which were lower by 1.18 percent and 2.75 percent, respectively than Rs 5,92,000 crore and Rs 4,53,205 crore in the previous fiscal.

"The cash position of the government during Q4 of FY16 was comfortable and remained in surplus mode during the quarter. The issuance amount under Treasury bills was also broadly as per calendar," it said.

It further said marketable securities (consisting of Rupee denominated dated securities and treasury bills) accounted for 84.8 percent of total public debt, as compared with 85.0 percent as on end-December 2015.

The outstanding internal debt of the government at Rs 5,130,179 crore constituted 37.8 percent of GDP at end-March 2016 as compared with 38.7 percent of GDP at end-December 2015, it said.

During the quarter G-sec yields witnessed significant intra-quarter movements.

G-Sec market opened the quarter on weak note tracking the depreciating domestic currency and local equity market.

"The market sentiment was adversely affected in February due to higher than expected inflation numbers, hardening bias in US Treasuries, higher borrowings of states, uncertainties over issuance of UDAYA bonds, etc., and 10-year G-sec yield touched a high of 7.85 percent, general levels last seen in June 2015," it said.

"Since February end, the market reversed its direction and gained significantly post budget on positive market sentiment. 10 Yr benchmark paper closed the quarter at 7.46 percent, lowest yield level since July 2013 as against 7.69 percent on December 31, 2015," he said.

In Q4 FY 16, Central Government dated securities continued to account for a dominant portion of total trading volumes.

Net inflows in the form of foreign direct investment (FDI) were robust in Q4 FY 2016 (Jan-Feb), more than sufficient to fund the external financing requirement.

During 2015-16 (up to end-March 2016), there has been an accretion of USD 18.54 billion to the foreign exchange reserves which touched USD 360.1762 billion at end-March 2016.

PTI DP .