Under Modi's Era India's Debt Increased To Rs 82 Lakh Crore: Govt Report
The 8th Edition of the Status Paper on Government debt revealed that the central government’s liability has escalated 49% to Rs 82 lakh crores in the last four and a half years under the reign of Narendra Modi reported The Economic Times. The report was released on January 18, 2019. The latest data which is till September 2018, shows that the total debt of the central government was Rs 82,02,253 crore. The Finance Ministry’s data showed that in June 2014, the amount was Rs 54,90,763 crore.
The surge in public debt is considered to be one of the primary reasons behind the spur in Central government’s debt. Public debt has increased by 51.7 % from Rs 48 lakh to Rs 73 lakh crore within a four-and-half year period. Rise in internal debt by 54% to about 68 lakh crore is further pushing the central government to dip in debt. Market loans showed similar results as it rose 47.5 % to more than Rs 52 lakh crore during the period. By the end of June 2014, there was no debt raised through gold bonds. However, it stood at Rs 9,089 crore including the gold monetisation scheme.
The Central government, in the status paper on government debt, provided an in-depth analysis of the overall debt position of the government. The paper said that total liabilities of the Central government are declining and the government’s debt portfolio is characterised by prudent risk profile.
The Finance Ministry said that the Central government has been coming out with an annual status paper on government debt since 2010-11. The paper further added that the government is relying on market-linked borrowings for financing its fiscal deficit. It added that convention indicators portray that the debt profile of the government is comfortably placed regarding debt sustainability and is improving consistently.
However, a small help is anticipated from the fiscal deficit side in the current financial while the country’s debt climbs. The financial debt till November (first eight months) stood at Rs 7.17 lakh crore, or 114.8 % of the Rs 6.24 lakh crore full year’s target.