GoI releases Medium Term Debt Management Strategy/MTDS
Q. GoI recently released the MTDS to better manage public borrowings. What does MTDS stand for?- Published on 04 Jan 16a. Medium Term Debt Management Schedule
b. Medium Term Debt Management Scheme
c. Medium Term Debt Management Strategy
d. None of the above
ANSWER: Medium Term Debt Management Strategy
To better managing public borrowing, government has taken the decision to switch to INR 50,000 crore high cost debt in 2016-2017 and 2017-2018 into fresh instruments of longer term maturity. In terms of releasing Medium Term Debt Management Strategy, Finance Ministry has announced the objective of debt management strategy is obtaining government funding at all times at a cost which is low in the medium/long term. MTDS is put together for the period 2015-2016 to 2017-2018 associated with outstanding government market borrowing as noted on March end 2015. Switches of INR 30,000 crore are conducted in 2015-2016 and INR 50,000 crore in 2016-2017 and 2017-2018 as part of the scenario analysis of the MTDS. Reversal in the interest rate cycle is set to lower borrowing cost in the domestic market in 2015-2016. MTDS is in accordance with the Medium Term Fiscal Policy Statement.
