Total liabilities of the government has increased 49 percent to Rs 82 lakh crore in the last four-and-half years in the Narendra Modi government, as per the 8th Edition of the Status Paper on Government Debt released Friday.
Related to the latest data available till September 2018 when the total debt of the Central government stood at Rs 82,03,253 crores, the corresponding amount till June 2014 was Rs 54,90,763 crores, the Finance Ministry’s data on government borrowings shows.
The high surge in government’s debt has been propelled by 51.7 percent growth in public debt from Rs 48 lakh crores to Rs 73 lakh crores in the four-and-half year period, which in turn was driven by 54 percent rise in internal debt to about Rs 68 lakh crores.
Dependence on market loans shows a similar rise of 47.5 percent to more than Rs 52 lakh crores in the period. While debt raised through gold bonds was nil at the end of June 2014, it stood at Rs 9,089 crores converting the gold monetization scheme.
The Central government, in the status paper on government debt, gave a complete analysis of the overall debt position of the government of India. It has been bringing out an any early 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 characterized 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 the debt profile of the government is comfortably placed in terms of debt sustainability parameters and is consistently enhancing,” 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 crores, or 114.8 percent of the Rs 6.24 lakh crores full year’s target.