Lok Sabha Question No. 1034 (UNSTARRED), answered on 2025-02-10
Subject: Debt-GDP Ratio
Ministry: FINANCE
Asked by: Shri Subbarayan K

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 1034

TO BE ANSWERED ON MONDAY, THE 10 th  FEBRUARY, 2025 MAGHA 21, 1946 (SAKA)

## DEBT-GDP RATIO

## 1034. Shri. Subbarayan K:

Will the Minister of FINANCE be pleased to state:

- (a) whether it is a fact that the Debt-GDP ratio of the country has gone up to 56.8% from 49.3% in F.Y. 2018-19;
- (b) if so, the details of the total debts of the country and the percentage of Debt-GDP ratio since 2018-19;
- (c) the details of the external debt and external Debt-GDP ratio for the period 2018-19 till date;
- (d) whether  the  Government  proposes  to  reduce  the  Debt-GDP  ratio  by  at  least  one percentage every year till it reaches to a sustainable ratio; and
- (e) if  so,  the  details  thereof  and  the  steps  proposed  to  be  taken  by  the  Government  to achieve the target and the details of sustainable Debt-GDP ratio?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) & (b): The details of the Central Government Debt and Debt-GDP ratio since 2018-19 are as under:

| Financial Year   | Central Government Debt   | Central Government Debt   |
|------------------|---------------------------|---------------------------|
|                  | Amount (₹ lakh crore)     | (% of GDP)                |
| 2018-19          | 93.26                     | 49.3                      |
| 2019-20          | 105.07                    | 52.3                      |
| 2020-21          | 121.86                    | 61.4*                     |
| 2021-22          | 138.66                    | 58.8                      |
| 2022-23          | 156.02                    | 57.9                      |
| 2023-24          | 171.70                    | 58.1                      |
| 2024-25(RE)      | 185.11                    | 57.1                      |
| 2025-26 (BE)     | 200.16                    | 56.1                      |

*Covid-19 pandemic impact

(c):  The details of the external debt and external debt-GDP ratio since 2018-19 is as under:

| Financial Year   | External Debt (current exchange rate)   | External Debt (current exchange rate)   |
|------------------|-----------------------------------------|-----------------------------------------|
| Financial Year   | Amount (₹ lakh crores)                  | (% of GDP)                              |
| 2018-19          | 4.74                                    | 2.5                                     |
| 2019-20          | 5.44                                    | 2.7                                     |
| 2020-21          | 6.15                                    | 3.1                                     |
| 2021-22          | 6.58                                    | 2.8                                     |
| 2022-23          | 7.48                                    | 2.8                                     |
| 2023-24          | 7.96                                    | 2.7                                     |
| 2024-25 (RE)     | 8.46                                    | 2.6                                     |
| 2025-26 (BE)     | 8.92                                    | 2.5                                     |

- (d)  &  (e):  The  Union Government in Budget Speech of FY 2024-25 (Regular Budget) has outlined a medium-term fiscal policy stance. It seeks to keep the Central Government fiscal deficit to GDP ratio such that the debt to GDP ratio is on a declining path. Further, it has been highlighted  in  FRBM  documents  of  FY  2025-26,  that  sans  any  major  macro-economic disruptive  exogenous  shock(s),  and  while  keeping  in  mind  potential  growth  trends  and emergent development needs, the Government endeavours to keep fiscal deficit in each year (from FY 2026-27 till FY 2030-31) such that the Central Government debt is on declining path to attain a debt to GDP level of about 50±1 per cent by 31st March 2031.

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