Lok Sabha Question No. 300 (STARRED), answered on 2021-08-09
Subject: Debt Burden
Ministry: FINANCE
Asked by: Sajda Ahmed

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

## LOK SABHA STARRED QUESTION NO.*300

TO BE ANSWERED ON MONDAY 9 th  AUGUST, 2021 SRAVANA 18, 1943 (Saka)

## 'Debt Burden' QUESTION

*300. SHRIMATI SAJDA AHMED:

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

- (a) The steps taken by the Government to overcome its high debt burden;
- (b) The estimated present debt of the country and whether it is a great cause of concern;
- (c) If so, the details thereof;
- (d) Whether the Government has assessed the repayment capacity; and
- (e) If so, the details thereof?

## ANSWER

MINISTER IN THE MINISTRY OF FINANCE (SMT NIRMALA SITHARAMAN )

(a) to (e ):   A Statement is placed on the Table of the House.

## Statement referred to in reply to Lok Sabha Starred Question No.*300 for answer on August 09, 2021 raised by SHRIMATI SAJDA AHMED regarding 'Debt Burden'

- (a) Towards  overcoming  the  debt  burden,  Government's  focus  is  to  reduce  fiscal deficit  from  6.8%  of  GDP  in  BE  2021-22  to  below  4.5%  of  GDP  by  2025-26.  Debt consolidation through increasing buoyancy of tax revenues through improved compliance,  increased  receipts  from  monetisation  of  assets  including  Public  Sector Enterprises and land are the additional steps involved.
- (b) &  (c)  Estimated debt of the Central Government as per the definition in the Fiscal Responsibility and Budget Management Act, 2003 and the details in rupees crore and as per  cent  of  GDP    are  provided  in  the  table  below.  Steps  enumerated  above  for  the Central Government and with adequate limits on the borrowings of State Governments, the present debt is not a great cause of concern.
- (d)  &  (e)  The  strategy  of  reducing  debt  involving  reduction  of  fiscal  deficit,  increasing buoyancy of taxes through improved compliance and increased receipts from monetisation of assets, including Public Sector Enterprises and land ensures repayment capacity of the Government of India.

| Table: Public Debt of Central Government   | Table: Public Debt of Central Government   | Table: Public Debt of Central Government   |
|--------------------------------------------|--------------------------------------------|--------------------------------------------|
| Description                                | 2020-21 (P)                                | 2020-21 (P)                                |
|                                            | ( ₹ crore)                                 | %of GDP                                    |
| 1. Public debt (2+3)                       | 10267043                                   | 52.0                                       |
| 2. External debt                           | 683677                                     | 3.5                                        |
| 3. Internal debt                           | 9583366                                    | 48.5                                       |
| 4. Other liabilities                       | 1686715                                    | 8.5                                        |
| 5. Total Debt (1+4)                        | 11953758                                   | 60.5                                       |
| GDP                                        | 19745670                                   |                                            |
| P: Provisional                             | P: Provisional                             | P: Provisional                             |

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