What is Public Debt Management Cell?
Q. A public debt management cell was formed on Oct 4 2016 by the Union Finance Ministry. Who is the person in charge of the cell?- Published on 07 Oct 16a. Joint Secretary, DEA
b. Secretary, DEA
c. Additional Secretary, DEA
d. None of the above
ANSWER: Joint Secretary, DEA
Union Finance Ministry on Oct 4, constituted the Public Debt Management Cell. The cell has been created to streamline public borrowing and ensure better cash management with the objective of deepening bond markets. Currently, the overall in charge of the PDMC will be the Joint secretary (Budget) Department of Economic Affairs, Ministry of Finance.
- In two years, the PDMC is scheduled to be upgraded to a statutory Public Debt Management Agency
- The interim arrangement will permit separation of debt management functions from RBI to PDMA in a seamless and gradual manner without market disruptions
- The PDMA will have only advisory functions to avoid conflict with RBI’s statutory functions
- It will also advise government of India on matters pertaining to investment, capital market operations, administration of interest rates on small savings among others
- Middle office of the Budget Division will be subsumed into PDMC with immediate effect
- Transition from PDMC to PDMA will be implemented by JIC or Joint Implementation Committee chaired by the Joint Secretary Budget
- Other members of the JIC will be from the RBI and the government
- According to a circular issued by the ministry, the JIC would operate under the supervision of the Monitoring Group on Cash and Debt Management with Secretary Economic Affairs and D-G, RBI as co-chairpersons.
- PDMC will be staffed by debt managers from the RBI budget division, current Middle Office and other government units
- The PDMA seeks to bring India’s external borrowings and domestic debt under one roof.
