Government debt rises to over Rs 100 trillion

Mumbai, Ta. 19 September 2020, Saturday

For the first time in the country's history, the central government's debt has crossed Rs 100 trillion at the end of June. According to a quarterly report released by the Finance Ministry's Economic Affairs Department, in the first quarter of the current financial year, from April to June, debt rose by Rs 3 trillion to over Rs 100 trillion.

This figure also includes public account liabilities. It covers reserve funds and deposits, securities against special subsidies etc.

Excluding public account liabilities, India's domestic and external debt stood at Rs 2.50 trillion at the end of June.

Debt is currently at 9 per cent of India's GDP, but analysts expect it to rise to 20 per cent by the end of FY21. In terms of debt, India is currently ranked 9th out of 180 countries.

Under the 2017 Fiscal Responsibility and Budget Management Rules, it is recommended to bring the public debt figure below 20 per cent of GDP by 202. The coronavirus has put countries around the world, including India, under financial strain.

In the current financial year, the government has increased the target for raising money from the market through loans, which it had set at Rs 2.50 trillion in the budget, to Rs 16 trillion.