In its annual report of 2000-01, the Reserve Bank of India had recommended the setting up of an autonomous Debt Management Office (DMO). A similar recommendation was made by the Report of the High Powered Expert Committee on making Mumbai an International Financial Centre and more recently the Report of the Committee on Financial Sector Reforms (draft) chaired by Prof. Raghuram Rajan and brought out by the Planning Commission. 
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In the 2007-08 Budget Speech, the Honourable Finance Minister had stated:
- "World over debt management is distinct from monetary management. The establishment of a DMO in the government has been advocated for some time. The fiscal consolidation achieved so far has encouraged us to take the first step. Accordingly, I propose to set up an autonomous DMO and, in the first phase, a Middle Office will be set up to facilitate the transition to a full-fledged DMO".
In light of these developments, the Ministry of Finance constituted an Internal Working Group to suggest how best to move forward on establishing a DMO. After examining arrangements for public debt management in a number of countries, the Working Group has recommended the establishment of a statutory body to perform the government debt and cash management functions in India. The report of the group envisions an agency that will manage debt for the Centre and States, with the overarching objectives of meeting their financing needs, while minimising borrowing costs within acceptable levels of risk. The report has proposed a draft Bill to create a National Treasury Management Agency.
This report of the internal working group on establishing a National Treasury Management Agency (NTMA) has been shared with the Regulators, state governments and other relevant agencies for their comments. It has also been put on the website of this Ministry.The comments on the report as well as the draft bill are invited by 31st December, 2008 at the following email id : am[dot]bajaj[at]nic[dot]in and shefali[dot]dhingra[at]nic[dot]in.
The Press Information Bureau is requested to give wide publicity to this Press release.
(Dr. K.P. Krishnan)
Joint Secretary (Capital Markets)
Press Information Officer,
Press Information Bureau,
Shastri Bhavan, New Delhi
