NEW DELHI – Total liabilities of the Indian government has increased 49 percent to INR82 lakh crore in the last four-and-half years during theNarendra Modi government, as per the 8th Edition of the Status Paper onGovernment Debt.
Compared to the latest data available till September 2018, when the totaldebt of the Central government stood at INR82,03,253 crore, thecorresponding amount till June 2014 was INR54,90,763 crore, the financeministry’s data on government borrowings shows, as reported by Indian media.
The huge surge in government’s debt has been propelled by 51.7 per centgrowth in public debt from INR48 lakh crore to INR73 lakh crore in thefour-and-half year period, which in turn was driven by 54 per cent rise ininternal debt to about INR68 lakh crore.
Dependence on market loans show a similar rise of 47.5 per cent to morethan INR52 lakh crore during the period. While debt raised through goldbonds was nil at the end of June 2014, it stood at INR9,089 crore includingthe gold monetisation scheme.
The central government, in the status paper on government debt, gave adetailed analysis of the overall debt position of the government of India.It has been bringing out an annual status paper on government debt since2010-11, the Finance Ministry said.
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“The overall liabilities of the central government are on a medium-termdeclining trajectory and government’s debt portfolio is characterised byprudent risk profile,” the paper, covering details of fiscal deficitfinancing operations of the government, however, said.
“Government is primarily resorting to market-linked borrowings forfinancing its fiscal deficit. Conventional indicators… indicate that debtprofile of the government is comfortably placed in terms of debtsustainability parameters and is consistently improving,” it added.
While the country’s debt has been on the rise, little help is expected fromthe fiscal deficit side in the current financial year. The fiscal deficitin the first eight months till November stands at INR7.17 lakh crore, or114.8 per cent of the INR6.24 lakh crore full year’s target.
