Bond yields rose by 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. Giving this information in a report, it has been said that the Reserve Bank should bring it under control by curbing short-sellers. SBI Research’s report released on Monday said that the Reserve Bank has readily supported the Center’s debt management. This has brought the cost of debt for the center to a low of 16 in the first half of 2020-21, as bond receipts are 5.75 per cent.

The report says that the main reason for this is short-sellers who are worried about the large 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.

Debt will be higher than expected

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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