Lok Sabha Question No. 31 (UNSTARRED), answered on 2020-02-03
Subject: Debt to GDP Ratio
Ministry: FINANCE
Asked by: Dushyant Singh

## Governmenl of India Department of Economic Affairs

## LOK SABHA UNSTARRED QUESTION NO. 31 ANSWERED ON 05.02.2020

## DERT TO GDP RATIO

## 31. SHRI DUSHYANT SINGH:

- (4) whether the Governmenl is awarc about the recommendation of Fiscal Responsibility and Budgel Management (FRBW) Revicw Committee for the State (jovernment and Central Ciovernment 5 Debt to GDP ratio:
2. (b) if s0, the details of the recommended targets for the Debt to GDP ralios for States and the Cenlre and the timelines recommended;
3. the details  of current   debt to GDP  ralio of thc Central Govemment   and all State Governments:
4. (d whether the (iovcrnment   plans to  achievc the recommended  targets for the Central Government and the State Governmncnts:
5. (e) and poliey Iramework to be undertaken by the Central Government t0 support and encourage Slate Gjovernments t achieve the target; plans
6. (f) in terms of percenlage of GDP: and
7. delails thercof?

## ANSWEK

## MINISTER OF STATE FOR FINANCE (SHRI ANURAG SINGH THAKUR)

- (a) Commillee Was received by Ministry of Finance on 2.3 January 2017.
- (b) The Committee recommended the following in respect of Debt-GDP ratio
- achieved no latcr than FY 23 , by
- Within the overall ceiling specified above, adopt & cciling of 40% for the Centre, and the
- The Government has amended the Fiscal Responsihility and Budget management Act, shall endcavour to ensure that
- 1 the Gieneral Governtnent debt does not exceed sixly per cenl:;
- ii. the Central Government debt docs not exceed forty per cenl;;

ol gross domestic product by the end of financial year 2024-25;'

- (e) Finance Commission (FFC) has prescribed the fiscal roadmap for each Statc for its award period 2015-20 and anchored Fiscal Delicit of all States to GSDP. Further; the year-lo-year flexibility for additional fiscal delieit is available to the States deficit limit of 3% in any given subject to the States maintaining the debt-GSDP ratio within 25% and interest payments-revenue receipls Talio within ]O% in the previous year: Ilowever; the flexibilily in availing the additional fiscal delieit is available to State if there is no revenue delicit in the year in which borrowing limits are to be fixed and immediately preceding 14th period year year
- from the Reserve Bank o[" India in thc financial year 2019-20 Non-Tax revenue; which is 0.7 per cent of the Revised Estimate of GDP for 2019-20 as per (Jnion Budget 2020-21.
- in   respect of Financial  Years 2019-20 and 2020-21 are conlained in the Medium-term Fiscal Policy cum Fiscal Policy Strategy Statement presented Lo Parliament along with the Union Budget on 1S February 2020.

|                           | BF 2019-20   |
|---------------------------|--------------|
|                           | 48.0         |
| B State/UT (as % of GSDP) |              |
| 1. Andhra Pradesh         | 31.6         |
| 2. Arunachal Pradesh      | 35.0         |
| 3.Assam                   | 18.9         |
| 4. Bihar                  | 32.4         |
| 5 . Chhattisgarh          | 23.7         |
| 6, Goa                    | 25.9         |
| 7 , Gujarat               | 19.2         |
| 8. Haryana                | 26.3         |
| 9_ Himachal Pradcsh       | 34.9         |
| 10, Jammu and Kashmir     | 48.2         |
| H1. Jharkhand             | 26.0         |
| 12, Karnataka             | 18.7         |
| 13 .Kerala                | 30.8         |
| 14. Madhya Pradesh        | 25,4         |
| 15 . Maharashlra          |              |
| 16. Manipur               | 38,1         |
| 17 . Meghalaya            | 33.0         |
| 18. Mizoran               | 31.6         |
| 19. Nagaland              | 58.4         |
| 20, Odisha                | 24.7         |
| 21 , Punjab               | 39.9         |
| 22. Rajasthan             | 33.6         |
| 23 . Sikkim               | 25.1         |
| 24. Tamil Nadu            | 21.7         |
| 25,Telangana              | 17.0         |
| 26. Tripura               | 25.5         |
| 27. Uttar Pradesh         | 38.1         |
| 28 . Uttarakhand          | 24,6         |
| 29.West Bengal            | 32,6         |
| 30, NCT Delhi             | 0.8          |
| 31. Puducherry            | 20,0         |
| AII States and UTs        | 24.9         |

Note: SDL 0f ?38,468,46 erore under Andhra Pradesh refleets transfer to Telangana due hifurcation of" the State Andhra Pradesh Source:

Stutement No 20 of Reserve Bank of India Report State Finances: A Study of Budgels of 2019-20

2. Union budget 2019-20 (Regulur)