Lok Sabha Question No. 3728 (UNSTARRED), answered on 2026-03-16
Subject: Outstanding Debt of Union Government
Ministry: FINANCE
Asked by: Ms. S Jothimani

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

## LOK SABHA UNSTARRED QUESTION NO. 3728

TO BE ANSWERED ON MONDAY, THE 16 th  MARCH, 2026 PHALGUNA 25, 1947 (SAKA)

## Outstanding Debt of Union Government

## 3728. Ms. S Jothimani:

Will the Minister of FINANCE be pleased to state:

- (a)  the  outstanding  debt  of  the  Union  Government  from  2004-05  to  2025-26,  indicating internal debt, external debt and liabilities under the Public Account separately, year-wise;
- (b) the debt-to-GDP ratio of the Union Government for each of the above years;
- (c) the annual interest payments made on Union Government debt during the said period, and their share in total revenue receipts;
- (d) the major factors contributing to the increase in public debt since 2004, including fiscal deficits, off-budget borrowings and extraordinary expenditures; and
- (e) the steps taken or proposed to be taken by the Government to manage and reduce the debt burden while ensuring adequate expenditure on social and developmental priorities?

## ANSWER

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

- (a) to (b): The  outstanding  debt  of  the  Union  Government  from  2004-05  to  2025-26, indicating internal debt, external debt and liabilities under the Public Account and debt-to-GDP ratio are in the Table below

(₹ in lakh crore)

| Financial Year   |   Internal Debt |   External Debt# |   Public Account liabilities |   Total Debt |   Debt to GDP ratio (Base year 2011-12) |
|------------------|-----------------|------------------|------------------------------|--------------|-----------------------------------------|
| 2004-05          |           12.76 |             1.91 |                         6.58 |        21.25 |                                    66.7 |
| 2005-06          |           13.9  |             1.94 |                         7.76 |        23.6  |                                    65   |
| 2006-07          |           15.45 |             2.01 |                         8.91 |        26.37 |                                    62   |
| 2007-08          |           18.08 |             2.1  |                         9.17 |        29.35 |                                    59.9 |
| 2008-09          |           20.29 |             2.64 |                        10.08 |        33    |                                    59.8 |
| 2009-10          |           23.49 |             2.49 |                        10.35 |        36.33 |                                    57.1 |
| 2010-11          |           26.67 |             2.79 |                        11.14 |        40.6  |                                    53.2 |
| 2011-12          |           32.17 |             3.23 |                        11.17 |        46.56 |                                    53.3 |
| 2012-13          |           37.65 |             3.32 |                        11.29 |        52.25 |                                    52.5 |
| 2013-14          |           42.41 |             3.74 |                        12.45 |        58.6  |                                    52.2 |

| Financial Year   |   Internal Debt |   External Debt# |   Public Account liabilities |   Total Debt |   Debt to GDP ratio (Base year 2011-12) |
|------------------|-----------------|------------------|------------------------------|--------------|-----------------------------------------|
| 2014-15          |           47.38 |             3.66 |                        13.07 |        64.11 |                                    51.4 |
| 2015-16          |           53.05 |             4.07 |                        13.87 |        70.98 |                                    51.5 |
| 2016-17*         |           57.54 |             4.08 |                        14.66 |        76.28 |                                    49.6 |
| 2017-18*         |           63.76 |             4.45 |                        15.84 |        84.05 |                                    49.2 |
| 2018-19*         |           70.9  |             4.74 |                        17.39 |        93.03 |                                    49.2 |
| 2019-20*         |           81.08 |             5.44 |                        19.27 |       105.79 |                                    52.6 |
| 2020-21*         |           98.14 |             6.15 |                        17.82 |       122.1  |                                    61.5 |
| 2021-22*         |          115.65 |             6.58 |                        16.65 |       138.88 |                                    58.9 |
| 2022-23*         |          132.11 |             7.48 |                        16.57 |       156.17 |                                    58.1 |
| 2023-24*         |          146.64 |             7.96 |                        17.14 |       171.73 |                                    57   |
| 2024-25*         |          159.83 |             8.74 |                        17.38 |       185.95 |                                    56.2 |
| 2025-26* (RE)    |          173.71 |             9.07 |                        17.75 |       200.53 |                                    56.1 |

Source: Budget Documents

* As per FRBM Definition, Internal Debt is net of cash balance and includes EBR.

# External Debt at current exchange rate.

(c): The annual interest payments made on Union Government debt and their share in total revenue receipts from 2004-05 to 2025-26 are in the Table below.

| Financial Year   |   Revenue Receipts (₹ in lakh crore) |   Interest payment (₹ in lakh crore) | %age of Revenue Receipts   |
|------------------|--------------------------------------|--------------------------------------|----------------------------|
| 2004-05          |                                 3.06 |                                 1.27 | 41.5%                      |
| 2005-06          |                                 3.47 |                                 1.33 | 38.2%                      |
| 2006-07          |                                 4.34 |                                 1.5  | 34.6%                      |
| 2007-08          |                                 5.42 |                                 1.71 | 31.6%                      |
| 2008-09          |                                 5.4  |                                 1.92 | 35.6%                      |
| 2009-10          |                                 5.73 |                                 2.13 | 37.2%                      |
| 2010-11          |                                 7.88 |                                 2.34 | 29.7%                      |
| 2011-12          |                                 7.51 |                                 2.73 | 36.4%                      |
| 2012-13          |                                 8.79 |                                 3.13 | 35.6%                      |
| 2013-14          |                                10.15 |                                 3.74 | 36.9%                      |
| 2014-15          |                                11.01 |                                 4.02 | 36.5%                      |
| 2015-16          |                                11.95 |                                 4.42 | 37.0%                      |
| 2016-17          |                                13.74 |                                 4.81 | 35.0%                      |
| 2017-18          |                                14.35 |                                 5.29 | 36.9%                      |
| 2018-19          |                                15.53 |                                 5.83 | 37.5%                      |
| 2019-20          |                                16.84 |                                 6.12 | 36.3%                      |
| 2020-21          |                                16.34 |                                 6.8  | 41.6%                      |
| 2021-22          |                                21.7  |                                 8.05 | 37.1%                      |
| 2022-23          |                                23.83 |                                 9.29 | 39.0%                      |
| 2023-24          |                                27.29 |                                10.64 | 39.0%                      |
| 2024-25          |                                30.36 |                                11.16 | 36.8%                      |
| 2025-26 (RE)     |                                33.42 |                                12.74 | 38.1%                      |

Source: Budget Documents

- (d): Public Debt to GDP ratio, which includes fiscal deficit, off-budget borrowings & extraordinary expenditure has followed a downward glide path except during the Covid years 201920 & 2020-21. Public Debt to GDP ratio has increased during FY 2019-20 & 2020-21 mainly on account of the stimulus provided to support the economy, however, since 2020-21 the debt to GDP ratio has followed a downward glide path.
- (e): Government focuses on income- generation expenditure (effective capital expenditure) to progressively reduce the debt burden. For example, in BE 2026-27, the Government's net borrowing of ₹16.96 lakh crore has been fully used for meeting effective capital expenditure of ₹ 17.15 lakh crore which includes expenditure on critical development sectors such as health, education and infrastructure.

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