Govt's public debt rose to Rs 40 lakh crore in Dec quarter

The government's total public debt in the October-December period in this financial year grew by 3.6% to Rs 40,48,219 crore from Rs 39,06,828 crore in the previous quarter.

"This represented a quarter-on-quarter increase of 3.6% (provisional) compared with an increase of 3.8% in the previous quarter (Q2 of FY13)," the Quarterly Report on Debt Management released by the Finance Ministry said.

The total debt excludes liabilities that are not classified under public debt.

Internal debt constituted 90.7% of public debt, compared with 90.5% at the end of the September quarter.

The outstanding internal debt at Rs 36,69,823 crore constituted 36.1% of GDP compared with 34.8% at September 2012 end.

The report further said the liquidity conditions in the economy remained tight during the quarter with the liquidity deficit. The RBI reduced CRR by 25 basis points, effective November 3, 2012 and purchased securities worth Rs 39,057 crore through OMO auctions during the quarter.

The net amount provided under Liquidity Adjustment Facility (LAF) operations increased almost consistently during the quarter, it added.

The cash position of the government during third quarter was comfortable and remained in positive territory for the entire quarter, the report said, adding the issuances of treasury bills were reduced during the quarter in view of the cash position.

On slowdown in net inflows from foreign investment during October-November, the report said that the decline was mainly on account of FDI as gross investment into India showed lower inflow while outbound investment increased.

Gross tax collections during April-November at 50.5% of budget estimate (BE) were marginally lower than 50.7% a year ago.

The report revealed that non-tax revenue at 46.3% of Budget Estimates was lower than 57.7% in the same period of the previous year.