The country's debt burden has risen to 87 percent of GDP

Mumbai, Ta. Monday, July 20, 2020

Kovid-12's disease and the lockdown imposed due to it have had a serious impact on the country's economy. Given the government's increase in borrowings to offset the economic impact of the corona, the country's debt burden is expected to rise to Rs 120 trillion in the current financial year, or 6.50 per cent of the country's total GDP, a report said.

Due to the impact of Corona, the economic growth rate of most of the countries of the world is going down and the ratio of debt to GDP is increasing.

India's total debt is expected to rise to Rs 3.50 trillion, or 2.50 per cent of GDP. The report also notes that the domestic debt figure will be 5 per cent of GDP.

A lower debt-to-GDP ratio means that the total number of services and goods produced in an economy is sufficient to cover its debt, and it does not require more debt.

In the last few years, the country's debt-to-GDP ratio, which was 7.50 per cent in 2011-12, has risen to 6.50 per cent at the end of 2015-16. India's debt to the tune of Rs 2.50 trillion in 2011-12 had increased to Rs 19.70 trillion in the last financial year.

Given the current level of the country's forex reserves, India is able to meet its external debt, the report said. There seems to be no difficulty in repaying the household debt.

So far in the current financial year, the government has borrowed Rs 2.50 trillion, which is 9 per cent more than the same period last year.