आर्थिक कार्य विभाग DEPARTMENT OF Economic Affairs


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Middle Office (Debt Management)

The Middle Office (Debt Management) reports to Joint Secretary, Budget.

The Union Budget for 2007-08 stated that "World over, debt management is distinct from monetary management. The establishment of a Debt Management Office (DMO) in the Government has been advocated for quite 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."

Following this announcement, the Middle Office was established in September 2008 in the Ministry of Finance. The Middle Office would be merged into the Debt Management Office (DMO), when it is established. The responsibilities of the Middle Office are as below:

  1. Pilot the evolution of the legal and governance framework appropriate to an independent debt office
  2. Formulation of a long term debt management strategy consistent with sustainability requirements
  3. Formulation of annual debt issuance strategy and periodic calendars of borrowing
  4. Forecasting cash and borrowing requirements
  5. Formulation of a comprehensive risk management framework
  6. Ensuring compliance to debt/cash management policy, strategy and risk guidelines
  7. Developing and maintaining a centralized database on Government liabilities
  8. Dissemination of debt related information to the public
  9. Presently, the debt management functions are performed by various agencies including the Reserve Bank and Ministry of Finance. These functionalities will be undertaken by the Middle Office in a phased manner to ensure a smooth transition from the existing arrangements.
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