New Delhi: The liquidity position during the April-June quarter has been comfortable, barring the period of advance tax outflow, according to a government report.
"The cash position of the government during Q1 of FY15 was comfortable and remained in surplus mode during the quarter, barring a few occasions, when it took recourse to WMA (Ways and Means Advances), the Debt Management report of Finance Ministry said.
Referring to the liquidity conditions, it said barring the period during which companies paid advance taxes, the money supply position as reflected by net borrowings from RBI under Liquidity Adjustment Facility (LAF) remained in comfortable zone of about one percent of the total deposits of the banking system.
For fiscal year 2014-15, gross and net market borrowing of the government stood at Rs 6 lakh crore and over Rs 4.61 lakh crore, respectively.
This shows an increase of 6.4 percent and 1.6 percent over 2013-14 levels of over Rs 5.63 lakh crore (gross) and over Rs 4.53 lakh crore (net), respectively.
During Q1 of FY15, the government issued dated securities worth Rs 1.98 lakh crore, higher than Rs 1.51 lakh crore in Q1 of last fiscal.
"Net market borrowings during the quarter at 26.6 percent of budget estimates were, however, lower than 28.6 percent of budget estimates in the previous year, reflecting higher repayments in the first quarter this year," the statement added.
Internal debt constituted 91.4 percent of public debt as at end-June 2014, while marketable securities accounted for 83.4 percent of total public debt.
The total public debt of the government increased by 3.7 percent in June quarter from the previous March quarter.
