Niti Aayog supports setting up of an independent debt management office

Better servicing of loans to substantially reduce India's interest payment

by Natasha Nadkar

The Niti Aayog vice chairman Rajiv Kumar has supported the idea of setting up an independent debt management office. The finance minister had proposed to set up a public debt management agency (PDMA) within the ministry of finance in Union Budget 2015-16. The vice chairman said that India’s interest payment is such a large part of the revenue expenditure that better management of debt servicing could substantially reduce interest payment. The government debt including market borrowing is currently managed by the RBI. There is a conflict of interest when RBI manages India’s debt as the central bank decides key interest rates as well as undertakes buying and selling of government bonds. He further expects India to grow at 7.5 per cent in 2018-19 and eight per cent in 2019-20.

References
1. https://economictimes.indiatimes.com/news/economy/finance/niti-aayog-bats-for-setting-up-independent-debt-management-office/articleshow/62872272.cms
CMIE STATISTICS
Unemployment Rate
Per cent
5.1 +0.1
Consumer Sentiments Index
Base September-December 2015
95.4 0.0
Consumer Expectations Index
Base September-December 2015
95.4 0.0
Current Economic Conditions Index
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Quarterly CapeEx Aggregates
(Rs.trillion) Jun 17 Sep 17 Dec 17 Mar 18
New projects 2.40 1.35 1.30 2.42
Completed projects 0.87 1.22 1.06 1.27
Stalled projects 2.67 0.69 0.95 3.35
Revived projects 0.23 0.34 0.22 0.18
Implementation stalled projects 0.77 0.78 0.59 1.05
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Quarterly Financials of Listed Companies
(% change) Jun 17 Sep 17 Dec 17 Mar 18
All listed Companies
 Income 9.6 7.9 11.9 11.9
 Expenses 9.9 9.0 13.0 18.9
 Net profit -19.8 -18.1 -14.7 -83.2
 PAT margin (%) 5.3 5.5 4.8 1.1
 Count of Cos. 4,499 4,486 4,449 1,647
Non-financial Companies
 Income 10.2 8.2 13.2 13.6
 Expenses 10.5 8.1 12.4 14.0
 Net profit -25.1 -6.0 12.7 5.3
 PAT margin (%) 5.2 6.2 6.4 7.9
 Net fixed assets 9.2 14.5
 Current assets 78.6 10.4
 Current liabilities 11.0 11.0
 Borrowings 10.4 -4.4
 Reserves & surplus 5.2 10.6
 Count of Cos. 3,472 3,458 3,445 1,306
Numbers are net of P&E
Updated on: 27 May 2018 4:20PM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.6 1.8 5.5 3.6
 Expenses 5.7 1.9 5.5 2.8
 Net profit 0.0 -10.0 25.8 9.8
 PAT margin (%) 3.1 2.8 3.6 10.0
 Assets 9.5 10.1 7.1 7.1
 Net worth 8.5 11.3 6.6 5.1
 RONW (%) 5.8 4.9 6.0 15.5
 Count of Cos. 25,791 23,882 21,156 37
Non-financial Companies
 Income 4.8 0.9 5.3 3.0
 Expenses 5.0 0.3 5.6 2.0
 Net profit -8.2 19.0 20.5 10.6
 PAT margin (%) 2.0 2.4 3.0 8.7
 Net fixed assets 13.4 17.3 6.1 2.7
 Net worth 7.0 12.0 5.3 3.6
 RONW (%) 4.7 5.2 6.1 17.0
 Debt / Equity (times) 1.1 1.1 1.0 0.2
 Interest cover (times) 1.9 1.9 2.1 16.2
 Net working capital cycle (days) 66 65 62 27
 Count of Cos. 21,034 19,996 17,659 28
Numbers are net of P&E
Updated on: 20 May 2018 10:09PM

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