Public Debt Management — Mains Questions

Critically analyze the challenges associated with public debt management in India, particularly in the post-pandemic era. Suggest reforms to enhance debt sustainability and fiscal transparency.

The Reserve Bank of India's dual role as monetary policy authority and government's debt manager presents a potential conflict of interest. Discuss the implications of this dual role and argue for or against the establishment of an independent Public Debt Management Agency (PDMA) in India.

Examine the role of the Fiscal Responsibility and Budget Management (FRBM) Act in promoting fiscal discipline and debt sustainability in India. What are its limitations, and how have recent global events impacted its effectiveness?