The Reserve Bank of India (RBI) is responsible for managing India's public debt, especially debt denominated in the domestic currency. The management of the central government's debt is conducted by RBI under statutory provisions that oblige the central government to delegate its debt management to the RBI.

1. z
PUBLIC DEBT MANAGEMENT AGENCY
Submitted by:
Akesh Kumar

2. z
What is Public Debt?
 Due to increase in activites of government , the volume of public
expenditure has risen over the year.
 Every time it is not possible to meet the increased expenditure
through the traditional source of revenue i.e Taxes.
 Thus, government obtains additional revenue through taxes
borrowings .
 Government borrows from commercial banks, central banks and
even from foreign financial units.
 In simple sense, the Government borrowings from other banks or
from foreign source to finance government expenditure is called
Public Debt.

3. z
Organizational Structure

4. z Types of Public Debt
Productive
and
Unproductive
Internal
and
External
Compulsory
and
Voluntary
Redeemable
and
Irredeemable
Short ,
Medium
&Long term
Funded
and
Unfunded

5. z
Public Debt Management
 According to the International Monetary Fund, public debt management refers to strategies
employed by a country's national authority to manage external debt. This includes loans given
to a government by other countries.

The main objective of public debt management is to ensure that the government's financing
needs and its payment obligations are met at the lowest possible cost over the medium to long
run, consistent with a prudent degree of risk.
 Some features include:
1. Recognition of the benefits of clear objectives for debt management.
2. Weighing risks against cost considerations.
3. The separation and coordination of debt and monetary management objectives and
accountabilities.
4. A limit on debt expansion.
5. The need to carefully manage refinancing and market risks .

6. z
 Public Debt Management Agency (PDMA) is a specialized independent agency
that manages the internal and external liabilities of the Central Government .
 PDMA is considered to be set up with the objective of “Minimising the cost of
raising and servicing public debt over the long-term within an acceptable level of
risk at all times, under the general superintendence of the central government".
Introduction to PDMA

7. z
NEED & Features
NEED
considered as
an
internationally
accepted best
practice
catalyst for
wider
institutional
reform
Fragmented
jurisdiction
in public
debt
management
FEATURES
Reissue and
trading of
Government
securities
Undertakes
cash
management
for the
central
government
Issuing and
redeeming
of short
term
securities &
advising on
its cash
managemen
t
Manages
and advises
the Central
Government
on its
contingent
liabilities

8. z
Core Functions
Only advisory functions
Planning of Government
borrowings
Monitor cash balances &
create an efficient market
for government securities
Advice government regarding
Investment & other fixations.
Development of an Integrated
Debt Database System (IDMS)
as a centralized database for all
liabilities of government.
Undertake necessary
elementary work for PDMA

9. z PDMA in INDIA
 In India, public debt refers to a part of the total borrowings by the Union Government which
includes such items as market loans, special bearer bonds, treasury bills and special loans and
securities issued by the Reserve Bank. It also includes the outstanding external debt.

At present, the government debt is managed by the Reserve Bank of India (RBI).
 The finance ministry is likely to set up a full-fledged independent public debt management
agency by the end of next year to manage government borrowing programme that runs into
lakhs of crore.
 The public debt office acts like an i-banker to the government and functions separately from the
central bank. A public debt office or a debt management office is an autonomous government
agency which acts as the investment banker to the government and raises capital from the
markets for the government.

10. z
Macroeconomic Developments
 Provisional estimates of
National Income:Growth
rates
 CPI & WPI Inflation (%)

11. z Debt Management
 Government Finances  Issuance Details

12. z
Survey of Public Debt Management Frameworks in Selected 14 Countries
1) Government Borrowing: Legal Framework, Accountability, and Authority
* ministry of finance or treasury;
* central bank;
* debt management agency;
* retail debt agency;
2 Debt Management Objectives, and Policy Choices and Instruments .
*it facilitates the design of the debt management program in a manner consistent
with the attainment of the debt management goals
* it enables the measurement of performance of the chosen debt management strategy.
* it harmonizes debt management policies with other policies.
3 Debt Management Planning.
4 Debt Program Implementation.
5 Operational Arrangements.
6 Location of Debt Management Functions and Division of Labor.

13. z
Public Debt Management all over.
In 2014, the finance minister... had announced setting up of independent debt management
office but it has not happened.
In his February 2015 budget speech, finance minister Arun Jaitley had proposed to set up a
Public Debt Management Agency (PDMA) within the finance ministry.
CURRENT AFFAIRS:(8thJan,2020)
 Euro zone government bond yields recovered their initial losses on Wednesday as
investors’ fears of a further and more serious escalation in U.S.-Iran tensions eased, while
a flurry of new bond issues from Germany, Ireland and Portugal supported yields.
 Spain is targeting gross debt issuance of 196.5 billion euros ($218.76 billion) in 2020,
down 6.2 percent from the 2019 target.

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16. z
THANKYOU!!