SME Times News Bureau | 19 Jan, 2019
Driven by a
sharp growth in public debt, total liabilities of the government has increased
49 per cent to Rs 82 lakh crore in the last four-and-half years during the
Narendra Modi government.
According to the
8th Edition of the Status Paper on Government Debt released Friday, compared to
the latest data available till September 2018 when the total debt of the
Central government stood at Rs 82,03,253 crore, the corresponding amount till
June 2014 was Rs 54,90,763 crore, the Finance Ministry's data on government
borrowings shows.
The huge surge in government's debt has been propelled by 51.7 per cent growth
in public debt from Rs 48 lakh crore to Rs 73 lakh crore in the four-and-half
year period, which in turn was driven by 54 per cent rise in internal debt to
about Rs 68 lakh crore.
Dependence on market loans show a similar rise of 47.5 per cent to more than Rs
52 lakh crore during the period. While debt raised through gold bonds was nil
at the end of June 2014, it stood at Rs 9,089 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 Rs 7.17 lakh crore, or 114.8 per
cent of the Rs 6.24 lakh crore full year's target.