Skip to main content

How Much debt on Indian Government?

The status report on Government debt for 2018-19 states that the total public debt of the country has increased to 68.6% of GDP by March 2019, which in simple terms has gone up to Rs.13 trillion or Rs. 1.3 crores. Read this article to know the exact amount of debt on the Indian government from 2014 to 2019.

Today there is hardly any country in the world that has not taken loans (internal or external loan) to run its country. Actually, the main reason behind this is that the main objective of the government is to increase the welfare of the citizens of the country.
The Finance Minister of the Government of India presents the deficit budget every year. It means, the income of the Government of India is lesser than its expenses, thus the central government borrows money which further increases the fiscal deficit of the country.
Type of Public debt
The government of India can take loans from both inside and outside the country.
1. Internal loan:- The loan which is taken within the country itself, is called an internal loan. This loan is taken from commercial banks, insurance companies, Reserve Bank of India, corporate houses, and mutual fund companies etc.
2. External debt:- The loan is taken from outside the country is called an external loan. This loan is taken from friendly countries, international institutions, and NRIs, etc.
The Department of Economic Affairs of the Ministry of Finance released a report in April 2020 titled; Status Report on Government Debt for 2018-19. It has been reported in this report that the total public debt of the country has increased to 68.6% of the gross domestic product by March 2019, in other words, it is Rs.13 trillion or Rs. 1.3 crores. 
The formula for calculating for this deficit is as follows;
Debt to GDP=Total GDP of country/Total debt of the country​​
  
Keep in mind that this loan of the Government of India also includes the loan taken by the state governments in India.
Debt on the Indian Government is as follows;
Year
Amount (Cr Rupees)
Debt to GDP Ratio
2011-12
5917279
67.7
2012-13
6659778
67.0
2013-14
7566767
67.4
2014-15
8334829
66.8
2015-16
9475280
68.8
2016-17
10524777
68.4
2017-18
11740614
68.7
2018-19
13023102
68.6
How much debt on India during the Modi government since 2014?
India's external debt was about 85 billion dollars in 1991, which increased to US$446 billion in 2014 and US$ 564 billion of GDP by the end of December 2019.
It means; since the Narendra Modi has taken oath as the Prime Minister of India; external debt on the country has been increased by 118 billion dollars.
An increase in the external debt is not a good sign because the county needs to repay this debt in foreign currency, i.e. dollars and other foreign currencies.
Internal debt on India:-
Having internal debt over the country is not as dangerous as foreign debt. That is why; the Government of India raises about 80% of its total debt within the country with the help of the Reserve Bank and the governments of the Indian states have taken about 94% of their total debt from internal sources.
The biggest sources of internal loans to the Government of India are commercial banks (40% of the total internal debt), 24% by insurance companies, and 15% by the Reserve Bank of India.
internal-debt-india-2020
What is the comfortable limit of Debt:-
According to the World Bank estimates, countries that have external debt more than 77% of its GDP faces problems in the long run. If the external debt increases one more percent after the limit of 77% of GDP; it reduces the GDP growth rate of that country by 1.7%.
Today, Japan is the largest debt-ridden country in the world. It has taken loans equal to 238% of its GDP, followed by 106% by the US, 68.5% by Brazil and 66.8% by India.

Comments

Popular posts from this blog

GK Questions and Answers: Geographical Indications (GI) Tags in India

A geographical indication (GI) is a name or sign used on certain products like agriculture, machinery products, and sweets, etc. which relates to a specific geographical location or origin (e.g., region, or country or a town). We have published a set of 10 important GK questions and answers on the Geographical Indications (GI) Tags in India. This set of 10 important GK questions and answers on the Geographical Indications (GI) Tags in India is very important for exams like UPSC/PSC/SSC/CDS etc. 1. Which was the first Indian product to get the geographical indication tag? (a).Aranmula Kannadi (b).Darjeeling Tea (c).Katarni Rice (d).Madhubani Paintings Answer:- b Explanation:-  Darjeeling Tea was the first Indian product to get the geographical indication tag in 2004.  2. How many products got GI tags till now? (a) 361 (b) 729 (c) 624 (d) None of the above Answer:- a Explanation:-  Till date 361 products have been issued GI tag. The latest recipient of the GI ta...

NDA Previous Year Cut Off Marks

Here is the previous year cutoff marks of   NDA exam , as well as subject-wise NDA cut off for the years 2019, 2018, 2017, 2016, 2015, 2014, 2013 and 2014 in this post. So, if you are appearing or preparing for UPSC NDA & NA examination, then get an idea about the minimum marks from below. Paper Written Exam Final Exam NDA & NA (II) 2019 346 709 NDA & NA (I) 2019 342 704 NDA & NA (II) 2018 325 688 NDA & NA (I) 2018 338 705 NDA & NA (II) 2017 258 624 NDA & NA (I) 2017 342 708 NDA & NA (II) 2016 229 602 NDA & NA (I) 2016 288 656 NDA & NA (II) 2015 269 637 NDA & NA (I) 2015 306 674 NDA & NA (II) 2014 283 656 NDA & NA (I) 2014 360 722 NDA & NA (II) 2013 360 721 NDA & NA (I) 2013 333 698 NDA & NA (II) 2012 335 699 Sectional UPSC Cut Off for NDA & NA There are also variations in the sectional cut off marks in NDA. Usually, it's around 25% to 30% somewhere. Check the UPSC NDA & NA sectional cut off from below the prev...

What is sero-surveillance? How will it help in tracking COVID-19 infection?

Sero-surveillance: The Indian Council of Medical Research, ICMR has issued an advisory to all the states of India to conduct serosurvey to monitor the Coronavirus pandemic. The Indian Council of Medical Research, ICMR has issued an advisory to all the states of India to conduct serosurvey to monitor the Coronavirus pandemic. The advisory further states that these tests can be carried out on frontline workers, medical professionals, vendors, police personnel, the staff of restaurants and grocery shops, etc. In addition to these, individuals residing in the containment zones and patients with chronic illness tuberculosis, HIV, etc. will also be covered.  The survey will also be conducted on asymptomatic individuals and the previously infected COVID-19 hit patients that have now recovered. The survey will be conducted with the help of the ELISA test kit.  What is sero-surveillance? In serosurvey or sero-surveillance, testing of blood serum of a group of individuals is c...