The government’s total liabilities crossed Rs 101.3 lakh crore for the first time at the end of June’20. As per the Department of Economic Affairs’ quarterly report shows that total liabilities increased to Rs 101.3 lakh crore from Rs 94.6 lakh crore as of end-March. It doesn’t include public account liabilities, which is around 91.1% of total outstanding liabilities. Because of the pressure that the Covid-19 pandemic exerted on government finances, the debt roses. Also, this increase in debt is caused by a fall in revenue collection during the pandemic.
The report also suggests that 28.6% of the outstanding dated securities had a residual maturity of lower than 5 years. In the interval underneath evaluation, industrial banks accounted for 39 percent and insurance coverage firms 26.2 percent. The net average liquidity absorption by RBI under the Liquidity Adjustment Facility (LAF), including the Marginal Standing Facility and Special Liquidity Facility, was Rs 4,51,045 crore during the quarter. The central government raised Rs 80,000 crore by issuing a money administration invoice throughout April-June 2020.