Lok Sabha Question No. 821 (UNSTARRED), answered on 2015-07-24
Subject: Per Capita Debt
Ministry: FINANCE
Asked by: CHANDRAKANT BHAURAO KHAIRE, RAM TAHAL CHOUDHARY, LAKHAN LAL SAHU, B.V. NAYAK, KAMLA DEVI PATLE, BANSHILAL MAHTO

1. the ranking of India among debt burden countries;

1. whether the per capita debt of the country has been rising, if so, the details thereof and the reasons therefor;

1. the per capita domestic debt and foreign debt including long-term and short term borrowings/loans during the last three years;

(d)   the total amount paid as principal and interest against domestic and foreign loans, institution-wise and country-wise during the said period along with the outstanding amount as on date; and

(e)   the steps taken/proposed to be taken by the Government to reduce the debt burden?

**ANSWER**

**MINISTER OF STATE IN THE MINISTRY OF FINANCE                   (SHRI JAYANT SINHA)**

(a)      As per the World Bank publication ‘International Debt Statistics-2015’, India ranked fourth position in terms of absolute external debt stock, among the top 20 debtor developing countries.

(b)      The per capita debt burden on the country *inter-alia* including external debt, internal debt and other liabilities as per Provisional Accounts of the Union Government for the year 2013-2014 is
 ` 41,129 and for the year 2014-2015 is ` 44,095. The increase in per capita debt is due to higher developmental expenditure to achieve higher growth.

(c)          The per capita debt for the last three years is as given below:

| Debt                                                               | End-March      (` in crore  )   |         |         |
|--------------------------------------------------------------------|---------------------------------|---------|---------|
| Debt                                                               | 2012-13                         | 2013-14 | 2014-15 |
| Per capita Domestic debt                                           | 35434                           | 39064   | 43419   |
| Per capita Foreign debt (including long-term  and short-term debt) | 2688                            | 2993    | 3020    |

-2-

(d)    	 Estimates of domestic and foreign debt (institution and country-wise) payments of principal and interest on Government Account during the last three years are given below (Table 1& 2):

| **Table 1: Domestic Debt Service Payments on Government Account**  (` in crore )   |          |         |           |          |         |                 |                 |                 |
|------------------------------------------------------------------------------------|----------|---------|-----------|----------|---------|-----------------|-----------------|-----------------|
| 2012-13                                                                            | 2012-13  | 2012-13 | 2013-14   | 2013-14  | 2013-14 | 2014-15 (prov.) | 2014-15 (prov.) | 2014-15 (prov.) |
| Principal                                                                          | Interest | Total   | Principal | Interest | Total   | Principal       | Interest        | Total           |
| 90644                                                                              | 313170   | 403814  | 110597    | 374254   | 484851  | 145078          | 411354          | 556432          |

| **Table 2:  External Debt Service Payments on Government Account**  (US$ million)                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                          | 2012-13                                                                                                                                                                                                                                                                                                                                  | 2012-13                                                                                                                                                                                                                                                                                                                                  | 2012-13                                                                                                                                                                                                                                                                                                                                  | 2013-14 PR                                                                                                                                                                                                                                                                                                                               | 2013-14 PR                                                                                                                                                                                                                                                                                                                               | 2013-14 PR                                                                                                                                                                                                                                                                                                                               | 2014-15 QE                                                                                                                                                                                                                                                                                                                               | 2014-15 QE                                                                                                                                                                                                                                                                                                                               | 2014-15 QE                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                          | Principal                                                                                                                                                                                                                                                                                                                                | Interest                                                                                                                                                                                                                                                                                                                                 | Total                                                                                                                                                                                                                                                                                                                                    | Principal                                                                                                                                                                                                                                                                                                                                | Interest                                                                                                                                                                                                                                                                                                                                 | Total                                                                                                                                                                                                                                                                                                                                    | Principal                                                                                                                                                                                                                                                                                                                                | Interest                                                                                                                                                                                                                                                                                                                                 | Total                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                          | External Debt on Govt. Account (A+B)                                                                                                                                                                                                                                                                                                     | 2,975                                                                                                                                                                                                                                                                                                                                    | 743                                                                                                                                                                                                                                                                                                                                      | 3,718                                                                                                                                                                                                                                                                                                                                    | 3,011                                                                                                                                                                                                                                                                                                                                    | 644                                                                                                                                                                                                                                                                                                                                      | 3,655                                                                                                                                                                                                                                                                                                                                    | 3,289                                                                                                                                                                                                                                                                                                                                    | 601                                                                                                                                                                                                                                                                                                                                      | 3,890                                                                                                                                                                                                                                                                                                                                    |
| A                                                                                                                                                                                                                                                                                                                                        | Multilateral (1 to 6)                                                                                                                                                                                                                                                                                                                    | 1,789                                                                                                                                                                                                                                                                                                                                    | 372                                                                                                                                                                                                                                                                                                                                      | 2,161                                                                                                                                                                                                                                                                                                                                    | 1,944                                                                                                                                                                                                                                                                                                                                    | 328                                                                                                                                                                                                                                                                                                                                      | 2,272                                                                                                                                                                                                                                                                                                                                    | 2,306                                                                                                                                                                                                                                                                                                                                    | 320                                                                                                                                                                                                                                                                                                                                      | 2,626                                                                                                                                                                                                                                                                                                                                    |
| 1                                                                                                                                                                                                                                                                                                                                        | ADB                                                                                                                                                                                                                                                                                                                                      | 284                                                                                                                                                                                                                                                                                                                                      | 80                                                                                                                                                                                                                                                                                                                                       | 364                                                                                                                                                                                                                                                                                                                                      | 338                                                                                                                                                                                                                                                                                                                                      | 59                                                                                                                                                                                                                                                                                                                                       | 397                                                                                                                                                                                                                                                                                                                                      | 359                                                                                                                                                                                                                                                                                                                                      | 60                                                                                                                                                                                                                                                                                                                                       | 419                                                                                                                                                                                                                                                                                                                                      |
| 2                                                                                                                                                                                                                                                                                                                                        | EEC                                                                                                                                                                                                                                                                                                                                      | 2                                                                                                                                                                                                                                                                                                                                        | 0                                                                                                                                                                                                                                                                                                                                        | 2                                                                                                                                                                                                                                                                                                                                        | 2                                                                                                                                                                                                                                                                                                                                        | 0                                                                                                                                                                                                                                                                                                                                        | 2                                                                                                                                                                                                                                                                                                                                        | 2                                                                                                                                                                                                                                                                                                                                        | 0                                                                                                                                                                                                                                                                                                                                        | 2                                                                                                                                                                                                                                                                                                                                        |
| 3                                                                                                                                                                                                                                                                                                                                        | IBRD                                                                                                                                                                                                                                                                                                                                     | 553                                                                                                                                                                                                                                                                                                                                      | 93                                                                                                                                                                                                                                                                                                                                       | 646                                                                                                                                                                                                                                                                                                                                      | 611                                                                                                                                                                                                                                                                                                                                      | 65                                                                                                                                                                                                                                                                                                                                       | 676                                                                                                                                                                                                                                                                                                                                      | 663                                                                                                                                                                                                                                                                                                                                      | 54                                                                                                                                                                                                                                                                                                                                       | 717                                                                                                                                                                                                                                                                                                                                      |
| 4                                                                                                                                                                                                                                                                                                                                        | IDA                                                                                                                                                                                                                                                                                                                                      | 937                                                                                                                                                                                                                                                                                                                                      | 196                                                                                                                                                                                                                                                                                                                                      | 1,133                                                                                                                                                                                                                                                                                                                                    | 979                                                                                                                                                                                                                                                                                                                                      | 201                                                                                                                                                                                                                                                                                                                                      | 1,180                                                                                                                                                                                                                                                                                                                                    | 1267                                                                                                                                                                                                                                                                                                                                     | 202                                                                                                                                                                                                                                                                                                                                      | 1,469                                                                                                                                                                                                                                                                                                                                    |
| 5                                                                                                                                                                                                                                                                                                                                        | IFAD                                                                                                                                                                                                                                                                                                                                     | 11                                                                                                                                                                                                                                                                                                                                       | 3                                                                                                                                                                                                                                                                                                                                        | 14                                                                                                                                                                                                                                                                                                                                       | 11                                                                                                                                                                                                                                                                                                                                       | 3                                                                                                                                                                                                                                                                                                                                        | 14                                                                                                                                                                                                                                                                                                                                       | 12                                                                                                                                                                                                                                                                                                                                       | 3                                                                                                                                                                                                                                                                                                                                        | 15                                                                                                                                                                                                                                                                                                                                       |
| 6                                                                                                                                                                                                                                                                                                                                        | OPEC                                                                                                                                                                                                                                                                                                                                     | 2                                                                                                                                                                                                                                                                                                                                        | 0                                                                                                                                                                                                                                                                                                                                        | 2                                                                                                                                                                                                                                                                                                                                        | 3                                                                                                                                                                                                                                                                                                                                        | 0                                                                                                                                                                                                                                                                                                                                        | 3                                                                                                                                                                                                                                                                                                                                        | 3                                                                                                                                                                                                                                                                                                                                        | 1                                                                                                                                                                                                                                                                                                                                        | 4                                                                                                                                                                                                                                                                                                                                        |
| B                                                                                                                                                                                                                                                                                                                                        | Bilateral (7to 12)                                                                                                                                                                                                                                                                                                                       | 1,186                                                                                                                                                                                                                                                                                                                                    | 371                                                                                                                                                                                                                                                                                                                                      | 1,557                                                                                                                                                                                                                                                                                                                                    | 1,067                                                                                                                                                                                                                                                                                                                                    | 316                                                                                                                                                                                                                                                                                                                                      | 1,383                                                                                                                                                                                                                                                                                                                                    | 983                                                                                                                                                                                                                                                                                                                                      | 281                                                                                                                                                                                                                                                                                                                                      | 1,264                                                                                                                                                                                                                                                                                                                                    |
| 7                                                                                                                                                                                                                                                                                                                                        | Germany                                                                                                                                                                                                                                                                                                                                  | 166                                                                                                                                                                                                                                                                                                                                      | 35                                                                                                                                                                                                                                                                                                                                       | 201                                                                                                                                                                                                                                                                                                                                      | 192                                                                                                                                                                                                                                                                                                                                      | 34                                                                                                                                                                                                                                                                                                                                       | 226                                                                                                                                                                                                                                                                                                                                      | 190                                                                                                                                                                                                                                                                                                                                      | 31                                                                                                                                                                                                                                                                                                                                       | 221                                                                                                                                                                                                                                                                                                                                      |
| 8                                                                                                                                                                                                                                                                                                                                        | France                                                                                                                                                                                                                                                                                                                                   | 42                                                                                                                                                                                                                                                                                                                                       | 6                                                                                                                                                                                                                                                                                                                                        | 48                                                                                                                                                                                                                                                                                                                                       | 38                                                                                                                                                                                                                                                                                                                                       | 7                                                                                                                                                                                                                                                                                                                                        | 45                                                                                                                                                                                                                                                                                                                                       | 38                                                                                                                                                                                                                                                                                                                                       | 7                                                                                                                                                                                                                                                                                                                                        | 45                                                                                                                                                                                                                                                                                                                                       |
| 9                                                                                                                                                                                                                                                                                                                                        | Japan                                                                                                                                                                                                                                                                                                                                    | 760                                                                                                                                                                                                                                                                                                                                      | 273                                                                                                                                                                                                                                                                                                                                      | 1,033                                                                                                                                                                                                                                                                                                                                    | 644                                                                                                                                                                                                                                                                                                                                      | 227                                                                                                                                                                                                                                                                                                                                      | 871                                                                                                                                                                                                                                                                                                                                      | 594                                                                                                                                                                                                                                                                                                                                      | 201                                                                                                                                                                                                                                                                                                                                      | 795                                                                                                                                                                                                                                                                                                                                      |
| 10                                                                                                                                                                                                                                                                                                                                       | Russian Federation                                                                                                                                                                                                                                                                                                                       | 189                                                                                                                                                                                                                                                                                                                                      | 48                                                                                                                                                                                                                                                                                                                                       | 237                                                                                                                                                                                                                                                                                                                                      | 163                                                                                                                                                                                                                                                                                                                                      | 40                                                                                                                                                                                                                                                                                                                                       | 203                                                                                                                                                                                                                                                                                                                                      | 132                                                                                                                                                                                                                                                                                                                                      | 35                                                                                                                                                                                                                                                                                                                                       | 167                                                                                                                                                                                                                                                                                                                                      |
| 11                                                                                                                                                                                                                                                                                                                                       | Switzerland                                                                                                                                                                                                                                                                                                                              | 1                                                                                                                                                                                                                                                                                                                                        | 0                                                                                                                                                                                                                                                                                                                                        | 1                                                                                                                                                                                                                                                                                                                                        | 1                                                                                                                                                                                                                                                                                                                                        | 0                                                                                                                                                                                                                                                                                                                                        | 1                                                                                                                                                                                                                                                                                                                                        | 1                                                                                                                                                                                                                                                                                                                                        | 0                                                                                                                                                                                                                                                                                                                                        | 1                                                                                                                                                                                                                                                                                                                                        |
| 12                                                                                                                                                                                                                                                                                                                                       | USA                                                                                                                                                                                                                                                                                                                                      | 28                                                                                                                                                                                                                                                                                                                                       | 9                                                                                                                                                                                                                                                                                                                                        | 37                                                                                                                                                                                                                                                                                                                                       | 29                                                                                                                                                                                                                                                                                                                                       | 8                                                                                                                                                                                                                                                                                                                                        | 37                                                                                                                                                                                                                                                                                                                                       | 28                                                                                                                                                                                                                                                                                                                                       | 7                                                                                                                                                                                                                                                                                                                                        | 35                                                                                                                                                                                                                                                                                                                                       |
| PR: Partially Revised;   QE: Quick Estimates.  ADB: Asian Development Bank, EEC: European Economic Community,  IBRD: International Bank for Reconstruction and Development, IDA: International Development Association, IFAD: International Fund  for Agricultural Development,  OPEC: Organisation of the Petroleum Exporting Countries | PR: Partially Revised;   QE: Quick Estimates.  ADB: Asian Development Bank, EEC: European Economic Community,  IBRD: International Bank for Reconstruction and Development, IDA: International Development Association, IFAD: International Fund  for Agricultural Development,  OPEC: Organisation of the Petroleum Exporting Countries | PR: Partially Revised;   QE: Quick Estimates.  ADB: Asian Development Bank, EEC: European Economic Community,  IBRD: International Bank for Reconstruction and Development, IDA: International Development Association, IFAD: International Fund  for Agricultural Development,  OPEC: Organisation of the Petroleum Exporting Countries | PR: Partially Revised;   QE: Quick Estimates.  ADB: Asian Development Bank, EEC: European Economic Community,  IBRD: International Bank for Reconstruction and Development, IDA: International Development Association, IFAD: International Fund  for Agricultural Development,  OPEC: Organisation of the Petroleum Exporting Countries | PR: Partially Revised;   QE: Quick Estimates.  ADB: Asian Development Bank, EEC: European Economic Community,  IBRD: International Bank for Reconstruction and Development, IDA: International Development Association, IFAD: International Fund  for Agricultural Development,  OPEC: Organisation of the Petroleum Exporting Countries | PR: Partially Revised;   QE: Quick Estimates.  ADB: Asian Development Bank, EEC: European Economic Community,  IBRD: International Bank for Reconstruction and Development, IDA: International Development Association, IFAD: International Fund  for Agricultural Development,  OPEC: Organisation of the Petroleum Exporting Countries | PR: Partially Revised;   QE: Quick Estimates.  ADB: Asian Development Bank, EEC: European Economic Community,  IBRD: International Bank for Reconstruction and Development, IDA: International Development Association, IFAD: International Fund  for Agricultural Development,  OPEC: Organisation of the Petroleum Exporting Countries | PR: Partially Revised;   QE: Quick Estimates.  ADB: Asian Development Bank, EEC: European Economic Community,  IBRD: International Bank for Reconstruction and Development, IDA: International Development Association, IFAD: International Fund  for Agricultural Development,  OPEC: Organisation of the Petroleum Exporting Countries | PR: Partially Revised;   QE: Quick Estimates.  ADB: Asian Development Bank, EEC: European Economic Community,  IBRD: International Bank for Reconstruction and Development, IDA: International Development Association, IFAD: International Fund  for Agricultural Development,  OPEC: Organisation of the Petroleum Exporting Countries | PR: Partially Revised;   QE: Quick Estimates.  ADB: Asian Development Bank, EEC: European Economic Community,  IBRD: International Bank for Reconstruction and Development, IDA: International Development Association, IFAD: International Fund  for Agricultural Development,  OPEC: Organisation of the Petroleum Exporting Countries | PR: Partially Revised;   QE: Quick Estimates.  ADB: Asian Development Bank, EEC: European Economic Community,  IBRD: International Bank for Reconstruction and Development, IDA: International Development Association, IFAD: International Fund  for Agricultural Development,  OPEC: Organisation of the Petroleum Exporting Countries |

The total outstanding liability as on 31 st March, 2015 amount   to ` 6894990.99 crore.

(e)    The Government has reverted to the path of fiscal consolidation with gradual exit from the expansionary measures in a calibrated manner. The reduction in Fiscal deficit from 4.6 per cent of GDP in Revised Estimates 2013-2014 to 4.1 per cent of GDP in Budget Estimates 2014-2015 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.   Government has announced a fiscal roadmap to bring down the fiscal deficit to 3% by 2016-2017 with a reduction of 0.5% - 0.6% every year.

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