A new methodology is being devised to streamline lopsided government-liability management against treasuries as the existing system creates an unpredictable financial burden amid maturity of too many bills and bonds together.
The government borrows through treasury bills and bonds and many of which mature in a single year. However, in some years, very few such instruments mature. This leads to a mismatch, overburdening the debt-service provisions in some years.
When a large number of bonds mature in a given year, the government faces high repayment pressure. Conversely, when fewer bonds mature, the repayment burden remains lower.
This inconsistency creates operational challenges for fiscal management, which has drawn attention of…
