Bond yields rose 0.31 per cent to over six per cent after the market debt target was raised to Rs 23 lakh crore during FY 2021-22. According to the report released by SBI Research, the Reserve Bank should bring it under control through short-sellers. The report said that the gross debt of the center and states is estimated to be Rs 22.1 lakh crore this year.

The report said that the Reserve Bank has readily supported the debt management of the center. This has brought down the cost of debt for the center to the last 16-year low in the first half of 2020-21, as bond receipts stood at 5.75 percent. In the report, the main reason for this has been told to short-sellers who are worried about the big loan scheme. The report has estimated that the government’s gross debt in the current financial year will be Rs 13.9 lakh crore as compared to the revised estimate of Rs 12.8 lakh crore. At the same time, net debt will be Rs 11.6 lakh crore as against the revised estimate of Rs 10.5 lakh crore.

According to the report, the gross debt of the center and states is estimated to be Rs 22.1 lakh crore this year. Its revised estimate was Rs 21.5 lakh crore. Similarly, the net debt of the Center and states is estimated to be Rs 18.4 lakh crore as compared to the revised estimate of Rs 17.8 lakh crore.

The report said that the gross debt of the center could come down to Rs 12.1 lakh crore and net debt to Rs 9.2 lakh crore in the next financial year. However, collectively the gross debt is estimated at Rs 23 lakh crore. At the same time, net debt is expected to come down to Rs 18.1 lakh crore.

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