Lok Sabha Question No. 4158 (UNSTARRED), answered on 2017-08-11
Subject: Debt to GDP Ratio
Ministry: FINANCE
Asked by: ABHISHEK SINGH

## MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA  UNSTARRED QUESTION NO. 4158 TO BE ANSWERED ON FRIDAY, THE 11 th  August, 2017

## Debt to GDP Ratio

## 4158, Shri Abhishek Singh:

## Will the Minister of Finance be please to state:

- (a) the present status of India's debt to Gross Domestic Products (GDP) ratio
- and its relative position among different countries of the world
- (b) the total annual interest payment on loans and debts over the last three years and the current year
- (c) whether the Government has fixed any target for bringing down the debt to
- GDP ratio; and
- (d) if so, details thereof?

## ANSWER

Minister of State for Finance (Shri Arjun Ram Meghwal)

- (a) The central government Debt-GDP ratio reduced from about 61.4 % in 2002-03 to about 46.7% in 2016-17 (RE) [includes External Debt (end-of-the financial year) at current  exchange  rate  and  excludes  part  of  NSSF  liabilities  to  the  extent  of  the borrowings  by  the  states  from  NSSF  and  MSS  liabilities,  which  do  not  finance Central Government deficit].  It is estimated to further go down to 44.7 % in 2017-18 (BE).

The Debt-GDP Ratio data for different countries as available on the World Bank site is placed below.

- (b) The  figures  of  total  annual  interest  payment  on  loans  and  debts  over  the  last three years and the current year are as under:-
- (i) 2014-2015  ` 4,02,444 crores (Actuals)
- (ii) 2015-2016  ` 4,41,659 crores (Actuals)
- (iii) 2016-2017  ` 4,83,069 crores (Revised Estimates)
- (iv) 2017-2018  ` 5,23,078 crores (Budget Estimates).
- (c) and (d) Yes Madam. The central government Debt - GDP ratio is estimated to go down  to  44.7  %  in  2017-18  (BE).  Continuing  the  declining  trend,  as  per  MTFP statement 2017-18 rolling target under FRBM Act 2003, Debt-GDP ratio of Central Government is projected to reduce further to 42.8 % in 2018-19 and 40.9 % in 201920.  Similarly  General  Government  Debt  (GGD)  to  GDP  ratio  also  declined  from 83.3% in 2002-03 to 68.5% in 2016-17.

## Data Source : World Bank

## Indicator Name : Debt - GDP Ratio

| Country Name   |   2014 |   2015 | 2016   |
|----------------|--------|--------|--------|
| Estonia        |   0.92 |   0.86 |        |

| Solomon Islands                              |   10.07 | 7.80   |       |
|----------------------------------------------|---------|--------|-------|
| Russian Federation                           |   11.18 | 13.52  |       |
| Kazakhstan                                   |   12.65 | 19.31  |       |
| Lithuania                                    |   13.98 | 14.54  |       |
| Botswana                                     |   17.45 |        |       |
| Norway                                       |   18.38 | 22.88  |       |
| Peru                                         |   19.32 | 22.65  |       |
| Switzerland                                  |   22.67 | 22.67  |       |
| Europe& Central Asia (excluding high income) |   22.82 | 24.14  |       |
| Namibia                                      |   22.95 |        |       |
| Micronesia, Fed. Sts.                        |   23.48 | 30.09  |       |
| Belarus                                      |   24.55 | 37.60  |       |
| Moldova                                      |   24.81 | 25.29  |       |
| Europe& Central Asia (IDA& IBRD countries)   |   27.35 | 28.55  |       |
| Indonesia                                    |   27.42 | 30.29  |       |
| Uganda                                       |   29.23 | 25.15  |       |
| Thailand                                     |   30.03 |        |       |
| Luxembourg                                   |   31.38 | 30.41  |       |
| Turkey                                       |   31.56 | 29.10  |       |
| Bulgaria                                     |   32.09 | 30.27  |       |
| Georgia                                      |   35.38 | 41.28  |       |
| Kyrgyz Republic                              |   37.87 | 69.69  |       |
| Czech Republic                               |   38.21 | 36.74  |       |
| Korea, Rep.                                  |   38.39 | 39.74  |       |
| Malawi                                       |   40.63 | 39.54  | 55.39 |
| Australia                                    |   42.44 | 47.17  |       |
| Uruguay                                      |   44.36 | 51.19  |       |
| Philippines                                  |   45.39 |        |       |
| Romania                                      |   45.82 | 44.96  |       |
| El Salvador                                  |   45.84 | 46.13  |       |
| India                                        |   47.5  | 47.20  | 47.70 |
| Sweden                                       |   48.22 | 46.43  |       |
| Denmark                                      |   48.5  | 42.55  |       |
| Bosnia and Herzegovina                       |   50.07 |        |       |
| Canada                                       |   50.34 | 54.71  | 53.25 |
| Malaysia                                     |   52.67 | 54.49  |       |
| Poland                                       |   53.02 | 53.33  |       |
| Germany                                      |   53.53 | 50.47  |       |
| Central Europe and the Baltics               |   53.73 | 53.08  |       |
| Samoa                                        |   54.41 | 57.78  | 52.61 |
| New Zealand                                  |   56.78 | 56.73  |       |
| Slovak Republic                              |   58    | 56.59  |       |
| Finland                                      |   58.02 | 59.42  |       |
| Brazil                                       |   58.46 | 67.48  |       |
| Bahamas, The                                 |   59.86 | 63.87  |       |
| Latvia                                       |   63.28 | 56.86  |       |
| Ukraine                                      |   63.67 | 70.26  |       |
| Dominica                                     |   64.32 |        |       |
| St. Kitts and Nevis                          |   64.76 |        |       |
| Seychelles                                   |   64.99 | 60.60  |       |

| Sri Lanka                 |   71.33 | 77.64   |       |
|---------------------------|---------|---------|-------|
| St. Lucia                 |   72.9  |         |       |
| Albania                   |   73.37 | 79.84   |       |
| Netherlands               |   73.43 | 70.57   |       |
| Belize                    |   76.47 |         |       |
| Europe& Central Asia      |   78.89 | 78.13   |       |
| Jordan                    |   79.93 |         |       |
| Colombia                  |   80.3  | 67.12   |       |
| Antigua and Barbuda       |   82.99 |         |       |
| Malta                     |   84.58 | 80.83   |       |
| Grenada                   |   88.54 |         |       |
| European Union            |   90.63 | 89.33   |       |
| Bhutan                    |   90.65 |         |       |
| World                     |   92.21 | 93.93   |       |
| Euro area                 |   92.8  | 91.53   |       |
| North America             |   92.86 | 93.93   | 95.55 |
| Slovenia                  |   94.12 | 94.90   |       |
| Austria                   |   96.02 | 95.71   |       |
| United States             |   97.11 | 97.84   | 99.77 |
| France                    |   97.67 | 98.04   |       |
| Hungary                   |   98.08 | 96.52   |       |
| Spain                     |   98.73 | 99.35   |       |
| OECD members              |   99.39 | 99.99   |       |
| High income               |  100.44 | 101.12  |       |
| Post-demographic dividend |  100.74 | 101.64  |       |
| Iceland                   |  101.39 | 87.11   |       |
| Singapore                 |  101.78 | 107.21  |       |
| United Kingdom            |  108.6  | 107.63  |       |
| Belgium                   |  112.08 | 109.55  |       |
| Ireland                   |  122.66 | 91.77   |       |
| Italy                     |  148.98 | 150.39  |       |
| Portugal                  |  151.82 | 150.27  |       |
| Cyprus                    |  151.86 | 152.66  |       |
| Japan                     |  193.43 | 197.95  |       |