Meaning of Debt Management:

Public debt management refers to certain methods which are adopted by governments with reference to the process of floating, refunding and repayment of public debt.

According to Prof. Abbot, public debt management is mainly concerned with

•  The form of issue of public securities,
•  The terms on which new bonds and securities are sold
•  Maturing debts are redeemed or refunded
•  The pattern of maturities of debt and its ownership.

It follows that the management of public debt is concerned with the determination of the structural features of public debt like maturity period, rate of interest etc.  The debt policy or management of public debt has a lot of significance as the changes in the stock of public debt and its portfolio may cause significant effects on the functioning of the economy. These changes may promote or contradict the existing monetary and fiscal policies. Therefore, there is greater need for close coordination between these policies. Such an important mechanism of management of debt should be governed by some principles.