India's loans and Debts hits historic level of history under PM Modi government
NEW DELHI - Total liabilities of the Indian government has increased 49 per cent to INR82 lakh crore in the last four-and-half years during the Narendra Modi government, as per the 8th Edition of the Status Paper on Government Debt.
Compared to the latest data available till September 2018, when the total debt of the Central government stood at INR82,03,253 crore, the corresponding amount till June 2014 was INR54,90,763 crore, the finance ministry’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 cent growth in public debt from INR48 lakh crore to INR73 lakh crore in the four-and-half year period, which in turn was driven by 54 per cent rise in internal debt to about INR68 lakh crore.
Dependence on market loans show a similar rise of 47.5 per cent to more than INR52 lakh crore during the period. While debt raised through gold bonds was nil at the end of June 2014, it stood at INR9,089 crore including the gold monetisation scheme.
The central government, in the status paper on government debt, gave a detailed analysis of the overall debt position of the government of India. It has been bringing out an annual status paper on government debt since 2010-11, the Finance Ministry said.
“The overall liabilities of the central government are on a medium-term declining trajectory and government’s debt portfolio is characterised by prudent risk profile,” the paper, covering details of fiscal deficit financing operations of the government, however, said.
“Government is primarily resorting to market-linked borrowings for financing its fiscal deficit. Conventional indicators… indicate that debt profile of the government is comfortably placed in terms of debt sustainability parameters and is consistently improving,” it added.
While the country’s debt has been on the rise, little help is expected from the fiscal deficit side in the current financial year. The fiscal deficit in the first eight months till November stands at INR7.17 lakh crore, or 114.8 per cent of the INR6.24 lakh crore full year’s target.