Govt's public debt rises to Rs 49.6 lakh cr at Sept-end

India's public debt increased to Rs 49.6 lakh crore at the end of the July-September quarter of 2014-15, up 2.8 percent over the previous quarter.

"The Public Debt of the Central Government (excluding liabilities under the 'Public Account') provisionally increased to Rs 49,60,472.3 crore as at end-September 2014 from Rs 48,27,485.6 crore at end-June 2014," a Finance Ministry report said.

It further said the internal debt constituted 91.7 percent of public debt at end of July-September quarter, compared with 91.5 percent at the end of the previous quarter. Marketable securities accounted for 83.9 percent of total public debt as compared with 83.5 percent as at end-June 2014.

"The outstanding internal debt of the government at Rs 45,49,351.3 crore increased marginally to 40.1 percent of GDP at end September 2014 from 38.9 per cent as at end-June 2014," it said.

The external debt amounted to about Rs 4.11 lakh crore. It further said that the G-Sec market opened the second quarter of 2014-15 steady but remained cautious ahead of Annual Budget. Market worries relating to higher fiscal deficit in the first two months of the financial year drove the yields marginally higher to quarter high in mid July 2014.

"Subsequently, the re-assurance by Finance Minister regarding fiscal prudence and RBI...enhancing the debt limit in G-sec available to FII/QFI/FPI by USD 5 billion with an equivalent reduction in the limit available for long term investor within the overall limit of USD 30 billion led tofall in yields," the report said.

The soft inflation numbers as well as comfortable liquidity condition during month of September, 2014, resulted in softening of yield at the quarter end across the Treasury bill yield curve, it added.

The report also said the cash position of the Government during second quarter of the fiscal was comfortable barring a few occasions, when it took recourse to Ways and Means Advances (WMA).