New Delhi: Total gross liabilities of the central government increased marginally. The total debt surged to Rs 160 lakh crore at December-end quarter 2023 from Rs 157 lakh crore at end-September, 2023. This represented a quarter-on-quarter increase of 1.8% in the third quarter (Q3) of 2023-24. The public debt management quarterly report released by the Union Finance ministry revealed this.
‘During the quarter, the yield on Indian domestic bond initially rose but softened thereafter on account of decline in crude oil prices, lower than expected domestic CPI prints for October and November and news about possible inclusion of Indian Government Bonds (IGBs) in a major global emerging market index,’ the report said.
As per data, public debt accounted for 90% of total gross liabilities during the quarter. The percentage of debt (dated securities) maturing in less than a year decreased to 4.1% by the end of December 2023 from 4.6% at the end of September 2023. .The percentage of debt maturing within 1-5 years stood at 21.8% by the close of December 2023, showing a decrease from 23% at the end of September 2023.
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The yield on Indian domestic bonds experienced an initial increase during the quarter but later eased due to factors such as a drop in crude oil prices, lower-than-expected domestic CPI figures for October and November, and reports suggesting the potential inclusion of Indian Government Bonds (IGBs) in a prominent global emerging market index, said the report.
At the end of December 2023, debt maturing within the next five years represented 25.9% of the total outstanding debt.
Earlier, data a released by the Controller General of Accounts (CGA) revealed that Union government’s fiscal deficit during April-February 2024 stood at Rs 15 lakh crore. It touched 86.5 per cent of the revised full FY24 target.Fiscal deficit is the difference between the total expenditure and revenue of the government. It is an indication of the total borrowings that are needed by the government.
For 2023-24, the government’s fiscal deficit is estimated at Rs 17.35 lakh crore or 5.8 per cent of the GDP. In February, the Centre’s fiscal deficit surged to Rs 3.98 lakh crore, 51.6 percent higher than a year ago.
The government’s total receipts stood at Rs 22.45 lakh crore (81.5 per cent of corresponding RE 2023-24 of total receipts) as of February 2024. On the whole, total receipts were 11.6 percent more in April 2023-February 2024 than what was collected in the same period of the previous year. The total expenditure incurred by the Centre was Rs 37.47 lakh crore (83.4 per cent of corresponding RE 2023-24).
The central government’s net tax collections – arrived at after making tax devolution to states – in the second month of 2024 came in at a negative of Rs 30,388 crores in February 2024.However, for April 2023-February 2024, net tax collections are still 6.8 percent up on a year-on-year basis.
India’s current account deficit (CAD) declined to $10.5 billion, or 1.2 per cent of the GDP, in the October-December 2023 quarter. The country’s CAD had stood at $11.4 billion during July-September 2023 and $16.8 billion a year ago.
Current account deficit occurs when the value of goods and services imported and other payments exceeds the value of export of goods and services and other receipts by a country in a particular period. Trade deficit is the difference between imports and exports of the country.
India’s net FDI inflow was at $8.5 billion during April-December 2023. It was lower than $21.6 billion during April-December 2022. The accretion of foreign exchange reserves (on a balance of payment basis) was at $6 billion in October-December (third quarter of the current financial year that ends on March 31). It was at $11.1 billion a year ago.
The merchandise trade deficit at $71.6 billion was marginally higher than $71.3 billion during the third quarter of 2022-23. Services exports grew by 5.2 per cent on a year-on-year basis. The foreign direct investment recorded a net inflow of $4.2 billion, more than double of net inflow of $2 billion in Q3 of 2022-23. Foreign portfolio investment recorded a net inflow of $12 billion in the quarter, higher than $4.6 billion a year ago.
External commercial borrowings to India recorded a net outflow of $2.6 billion in October-December. It was at $2.5 billion a year ago. Non-resident deposits recorded a higher net inflow of $3.9 billion than $2.6 billion a year ago.
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