How to manage debt

Description

In the budget speech of 2007-08, the finance minister had proposed the setting up of an autonomous debt management office (DMO). Since 1997, various experts have suggested hiving off the debt management function from the RBI to an independent entity. The separation of the two has been followed by an increasing number of countries and is considered an efficient way of managing debt, which has different objectives from monetary management. The objective of debt management, as generally defined, is raising resources from the market at the minimum cost while containing the risks. In contrast, the objective of monetary policy in India is to maintain a judicious balance between price stability, economic growth and financial stability. Thus, the objective of debt management is subsumed in the overall objectives of monetary policy in India. Read more at: http://archive.indianexpress.com/news/how-to-manage-debt/1080757/

Publication Date

28-2-2013

Publication Title

The Indian Express

Publisher

The Indian Express ltd

Keywords

Financial management, Debt management, Monetary management

Source Link URL

http://archive.indianexpress.com/news/how-to-manage-debt/1080757/

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