Public Debt Management — Prelims Questions

Which of the following statements regarding Public Debt Management Agency (PDMA) in India is/are correct? 1. The Reserve Bank of India currently performs the functions of public debt management for the Central Government. 2. The establishment of an independent PDMA is aimed at separating debt management from monetary policy functions. 3. The Fiscal Responsibility and Budget Management (FRBM) Act mandates the creation of a PDMA. Select the correct answer using the code given below:

With reference to State Development Loans (SDLs), consider the following statements: 1. SDLs are marketable securities issued by State Governments to meet their borrowing requirements. 2. Under Article 293 of the Constitution, a State Government cannot raise any loan without the consent of the Union Government if it has outstanding loans from the Centre. 3. The interest rates on SDLs are typically lower than those on Central Government securities due to lower risk perception. Which of the statements given above is/are correct?

Which of the following are objectives of public debt management in India? 1. Minimizing borrowing costs over the long term. 2. Managing refinancing risk and interest rate risk. 3. Developing a deep and liquid government securities market. 4. Ensuring adequate fiscal space for monetary policy operations. Select the correct answer using the code given below:

Which of the following is NOT considered an 'off-budget borrowing' by the Central Government in India?

Consider the following statements regarding the Medium Term Debt Management Strategy (MTDS) in India: 1. It is a framework that outlines the government's debt management objectives and strategy over a 3-5 year horizon. 2. The primary goal of MTDS is to maximize short-term borrowing to ensure immediate liquidity. 3. It typically includes targets for the composition of debt, such as the share of external debt or fixed-rate debt. Which of the statements given above is/are correct?