Report of the Internal Working Group on Debt Management

Establishing a debt management office would consolidate all debt management functions in a single agency, and be the catalyst for wider institutional reform and transparency about public debt. It is internationally accepted best practice that debt management should be disaggregated from monetary policy, and taken out of the realm of the central bank. Most advanced economies have dedicated debt management offices. Several emerging economies, including Brazil, Argentina, Colombia, and South Africa, have restructured debt management in recent years and created a DMO. The central Government’s proposal to create DMO is the crucial first step in reviewing and improving public debt management and building a government securities market. This report aims to lay out the rationale for restructuring debt management arrangements in India, the Working Group’s vision for these new arrangements and practical steps for transitioning to these new arrangements.