Lok Sabha Question No. 436 (STARRED), answered on 2016-12-16
Subject: Per Capita Debt
Ministry: FINANCE
Asked by: LAXMI NARAYAN YADAV, RAM TAHAL CHOUDHARY

## Government of India Ministry of Finance Department of Economic Affairs

## LOK SABHA STARRED   QUESTION NO. +*436 TO BE ANSWERED ON FRIDAY, 16 th  DECEMBER, 2016 AGRAHAYANA  25, 1938 (SAKA)

## PER CAPITA DEBT

## + *436.  SHRI LAXMI NARAYAN YADAV: SHRI RAM TAHAL CHOUDHARY:

Will the Minister of FINANCE ( वित्त मंत्री ) be pleased to state:

- (a) whether the per capita debt burden is on the rise in the country;
- (b) if so, the details thereof and the reaction of the Government in this regard; and
- (c) the details of the per capita debt burden in the country at present in comparison to the per capita debt burden during the year 2009 along with the interest paid thereon?

## ANSWER

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FINANCE MINISTER                                          (SHRI   ARUN JAITLEY)

- (a) to (c ): A statement is placed on the Table of the House.

Statement referred to in reply to Lok Sabha Starred Question No. +*436 for answer on December  16,  2016  raised  by  SHRI  LAXMI  NARAYAN  YADAV  AND  SHRI  RAM TAHAL CHOUDHARY regarding PER CAPITA DEBT

As per Finance Accounts and data on population, per capita debt calculated on the basis of Union Government Debt as on 31 st March 2016 was ` 53,796 as against ` 49,270 as on 31 st March 2015.

The  per  capita  debt  has  increased  primarily  on  account  of  developmental expenditure to achieve higher growth. The per capita debt burden of Union Government inter-alia includes external debt, internal debt and other liabilities as per Finance Accounts of the Union Government, the per capita debt during 2009-10 and from 2013-14 to 2015-16 is as under:

| Table: Details of per capita debt and Interest Paid on Debt   | Table: Details of per capita debt and Interest Paid on Debt   | Table: Details of per capita debt and Interest Paid on Debt   |
|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|
| Year                                                          | Per capita Debt ( ` )                                         | Interest paid on Debt ( ` in crore)                           |
| 2009-10                                                       | 30,171                                                        | 213,093                                                       |
| 2013-14                                                       | 45,319                                                        | 374,254                                                       |
| 2014-15                                                       | 49,270                                                        | 402,444                                                       |
| 2015-16                                                       | 53,796                                                        | 441,659                                                       |

The  Central  Government  has  been  following  a  comprehensive  strategy  to moderate growth in public debt through a policy of fiscal rectitude including, inter alia, recourse to lower cost borrowings, phased introduction of active consolidation of debt, emphasis on  raising  funds  on  concessional  terms  and  from  less  expensive  sources with longer maturities, monitoring short term debt and encouraging non-debt creating capital flows. The reduction in Fiscal deficit from 3.9 per cent of GDP in RE 2015-16 to 3.5  per  cent  of  GDP  in  BE  2016-17  is  designed  with  a  mix  of  reduction  in  total expenditure  as  percentage  of  GDP  and  improvement  in  gross  tax  revenue  as percentage  of  GDP.  With  reprioritization  of  expenditure  towards  developmental  side and  curtailing the growth  in non-development  expenditure,  total expenditure is estimated to decline as percentage of GDP.

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