Financial Daily from THE HINDU group of publications
Tuesday, Oct 05, 2004
Financial Daily from THE HINDU group of publications Tuesday, Oct 05, 2004 |
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Opinion
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Letters Public debt management
According to press reports the Kelkar Panel has recommended the Government's taking over of domestic public debt management from the Reserve Bank of India. The Fiscal Responsibility and Budget Management Act stipulates that, effective April 1,2006, the central bank will not provide underwriting support to government securities in the primary market. Once it is in place it does not really matter if the administrative work of floatation and servicing of debt continues to be attended to by the RBI on an agency basis earning a fee for the service, just as it is doing in the case of exchange control. Even if a Public Debt Office were to be set up in Government it will need to take on deputation the experienced RBI staff paying an extra allowance for the purpose. It is just possible that the office may be in Mumbai, the centre for securities market. The only difference will be additional expenditure for Government with no tangible benefits. A. Seshan
Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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