Sunday, May 24, 2020

Status Paper on Government Debt released


On May 22, 2020, the Ministry of Finance released Status Paper on Government Debt 2018-19. According to the report, the overall debt of centres and states declined by 68.7% in March 2018 to 68.6% in 2019.

Highlights

  • The Status Paper on Government Debt is being produced by the Ministry of Finance since 2010. 
  • Current debt of India stands at Rs 1.3 crore crore.

Key Findings of paper

  • The debt of central government dropped marginally from 45.8% in 2017-18 to 45.7% in 2019, The external debt was 2.7% of GDP. 
  • The Average Interest Cost of the centre remained unchanged in the year 2018 to 2019. 
  • Around 94% of centre’s liabilities were of domestic debts.
  • The tenure of the longest security was 37 years.

Government Debt

  • The Government Debts are classified as internal debt and external debt. 
  • The Internal Debts include non-marketable and marketable debt. 
  • External debt refers to debt borrowed from all the sources outside the country.
  • Government Liabilities are classified into liabilities in public account and debt contracted against Consolidated Funds of India.

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