Economy News

Public debt: Center debt burden hits Rs 146 lakh crore in third quarter – Mintpaisa

Total central government debt increased by 2.6% in the December quarter of the current financial year from the previous quarter to Rs 146.36 lakh crore, according to data from the Ministry of Finance released on Tuesday.

While internal debt increased by 2.1% to Rs 125.24 crore in December 2022 from the previous quarter, external debt totaled Rs 9.17 crore, up 6.1%. The centre’s other liabilities rose by 5% over the period to Rs 11.96 lakh crore, the data showed.

Public debt, comprising both internal and external debt, represented 91.8% of the Centre’s total debt at the end of December, slightly less than 92% at the end of September last year. At Rs 88.69 lakh crore, market loans accounted for 71% of the Centre’s internal debt, according to the data.

Allaying concerns about high debt levels, Finance Minister Nirmala Sitharaman recently said that central government external debt would amount to just 2.6% of gross domestic product (GDP) as of March 31, 2023. “External debt is mainly financed by multilateral and bilateral agencies at preferential rates. Therefore, the risk profile turns out to be safe and prudent,” Sitharaman said in a written response to the Lok Sabha.

Global ratings agencies have often flagged India’s “weak public finances”, reflected in high deficits and debt relative to its peers, though they conceded the country’s robust growth prospects relative to its peers. peers and still resilient external finances.

Of course, the Great Pandemic Stimulus and economic contraction has worsened the Central and State’s combined debt-to-GDP ratio to 89.2% in FY21 from 75.1% in FY21. FY20. But the International Monetary Fund has projected the ratio to improve to 83.5% of GDP in FY23 and gradually decline from FY26.


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