GOVERNMENT DEBT

Jan. 19, 2019

The Central Government today released the 8th Edition of the Status Paper on the Government Debt, which provides a detailed analysis of the Overall Debt Position of the Government of India.

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The Central Government has been bringing-out an Annual Status Paper on Government Debt since 2010-11.
This paper enhances transparency by providing a detailed account of debt operations during the year and an assessment of the health of the public debt portfolio based on internationally accepted debt performance indicators.

Key findings of the paper:

Total liabilities of the government have increased by 49 % to Rs. 82 lakh crores in the last four-and-half years during the NDA government.
The huge surge in government's debt has been propelled by 51.7 % growth in public debt from Rs. 48 lakh crores to Rs. 73 lakh crores in the four-and-half year period.
Dependence on market loans show a similar rise of 47.5 % to more than Rs. 52 lakh crores during the period.
While debt raised through gold bonds was nil at the end of June 2014, it stood at Rs. 9,089 crores including the gold monetisation scheme.
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. Debt profile of the government is comfortably placed in terms of debt sustainability parameters.
Government is primarily resorting to market-linked borrowings for financing its fiscal deficit.
The Paper also provides Debt Management Strategy of the Central Government for the years 2018-21 which will guide the borrowing plans of the Government.