There is no denying that public debt management involves establishing and implementing a policy to manage government liabilities and raise required funding. It ensures the tracking of cost and risk objectives while meeting other public debt management goals, such as developing and maintaining an efficient, liquid market for government securities. Consequently, the legal framework must clarify the authority to borrow, issue new currency, own assets, invest, and undertake transactions on behalf of the government.
The organisational framework should be clearly specified, with well-articulated mandates and roles. Sovereign debt management may span a country’s debt management office or a central depository. A public debt management report should be published annually to review the preceding year’s activities and provide a synopsis of borrowing plans based on the budget deficit or surplus.
The Public Accounts comprise three divisions: Debt, Deposits and Reserves, and Remittances. The ‘Debt’ division comprises receipts and payments where the government incurs a liability to repay the money received or holds a claim to recover the amount paid, along with the respective repayments and recoveries. Transactions related to the State General Provident Fund, National Savings Certificates, and Postal Savings Certificates are recorded in this division.
The ‘Deposits and Reserves’ division comprises receipts and payments for which the government acts as a banker. In this role, the government deals with civil deposits, personal deposits, and renewal reserve funds. The ‘Remittances’ division comprises all adjusting heads, such as remittances to and from Bangladesh Bank, as well as departments like the PWD, Defence, Forest, T&T, and Postal services. Remittances to Bangladesh missions abroad are also included in this division.