Business Standard
What is Public debt

Public debt

About Public debt

What is Public debt

Public debt is the total amount, including total liabilities, borrowed by the government to meet its development budget. It has to be paid from the Consolidated Fund of India. The term is also used to refer to overall liabilities of central and state governments, but the Union government clearly distinguishes its debt liabilities from the states’.
 
The central government broadly classifies its liabilities into two categories — debt contracted against the Consolidated Fund of India, and public account.
 
Over the years, the Union government has followed a considered strategy to reduce its dependence on foreign loans in its overall loan mix. Internal debt constitutes over 93 per cent of the overall public debt. Internal loans that make up for the bulk of public debt are further divided into two broad categories – marketable and non-marketable debt.
 
The sources of public debt are dated government securities (G-Secs), treasury bills, external assistance, and short-term borrowings.
 
According to the Reserve Bank of India Act, 1934, the RBI is both the banker and public debt manager for the government. The RBI handles all the money, remittances, foreign exchange and banking transactions. The Union government also deposits its cash balance with the RBI.
 
The Union government’s liabilities account for a little over 46 per cent of India’s gross domestic product (GDP). However, if the public debt is calculated as general government liabilities, which also includes the liabilities of states, this goes up to 68 per cent of the country’s GDP.
 

Latest Updates on Public debt

Public debt hits $97 trn in 2023; developing countries most affected: UN

In 2023, public debt in developing countries hit $29 trillion, or about 30% of the total worldwide an increase from a 16% share in 2010, the UN office said

Updated On : 04 Jun 2024 | 9:31 PM IST
Image

US, China public debt to nearly double by 2053 under current policies: IMF

The report projected overall primary deficits would decline to 4.9% of global GDP from 5.5% in 2023, but with substantial risks threatening public finances in many countries

Updated On : 17 Apr 2024 | 7:53 PM IST
Image

Govt's gross liabilities rise to Rs 160.69 trillion at Dec-end: FinMin

This represented a quarter-on-quarter increase of 1.8 per cent in the September quarter of 2023-24, said the public debt management quarterly report (October-December 2024)

Updated On : 28 Mar 2024 | 9:33 PM IST
Image

Sebi, RBI widen investigation into public debt issue subscriptions: Report

Investigators are also studying if disproportionate loans were given to subscribes and whether customer identification processes were not adequately followed, the sources added

Updated On : 08 Mar 2024 | 7:13 PM IST
Image

Sebi bars JM Financial from acting as lead manager of debt issue

Shares of JM Financial tanked by 20 per cent following the RBI order on Wednesday. Later, the stock recouped the bulk of the losses

Updated On : 07 Mar 2024 | 11:03 PM IST
Image

Positive outlook

High public debt remains a risk

Updated On : 21 Dec 2023 | 8:58 PM IST
Image

US public debt is projected to reach 181% of economic activity in 30 years

The nation's fiscal health became the focal point of debate during the latest round of debt ceiling negotiations

Updated On : 29 Jun 2023 | 7:01 AM IST
Image

Debt and its dangers

Generous debt restructuring is necessary for its efficacy, but the dominance of the Paris Club of advanced economy lenders has diminished due to a rise in the share of private creditors

Updated On : 03 May 2023 | 10:32 PM IST
Image

Uttar Pradesh govt's public debt estimated to touch Rs 7.84 trillion

The estimated public debt of Rs 7.84 trillion exceeds the UP Annual Budget of Rs 6.90 trillion by Rs 94,000 crore or nearly 14 per cent

Updated On : 10 Mar 2023 | 11:28 PM IST
Image

IMF calls for 'more ambitious' fiscal consolidation by India, cites risks

But govt asserts public debt is sustainable

Updated On : 23 Dec 2022 | 11:59 PM IST
Image

Govt looks to expand debt management cell as PDMA remains in backburner

A top govt official told Business Standard that internally, the plan for PDMA is unlikely to be revived

Updated On : 04 May 2022 | 8:39 PM IST
Image

Punjab CM Mann orders probe on why public debt swelled to Rs 3 trn

Twenty per cent of the annual budget is being spent only to pay the interest on the loans

Updated On : 18 Apr 2022 | 9:40 PM IST
Image

Gujarat's public debt crosses Rs 3 trn; amount within norms, says state FM

In a written reply to a sub-question about interest paid on loans taken in the last two years, Desai said the state had paid Rs 20,293 crore as interest

Updated On : 15 Mar 2022 | 9:41 PM IST
Image

Does Japan vindicate Modern Monetary Theory?

A blanket endorsement of MMT and its policy implications is the last thing Japan needs

Updated On : 31 Dec 2021 | 11:11 PM IST
Image

RBI warns against combination of high public debt, low interest rates

The Reserve Bank of India (RBI) has said that the combination would pose challenges.

Updated On : 02 Jul 2021 | 5:47 PM IST
Image

Elevated public debt in fiscal year 2021 matter of concern: Report

The fiscal position of the country has worsened due to the pandemic

Updated On : 15 Apr 2021 | 4:00 PM IST
Image

India's public finances and private sector at taper tantrum risk

India is the third most indebted country among major emerging markets, behind Argentina and Brazil.

Updated On : 22 Mar 2021 | 6:10 AM IST
Image

ArcelorMittal lists India's high public debt as risk factor for investments

India's public debt at 89.3% of GDP is one of the highest among EMs

Updated On : 15 Mar 2021 | 11:32 PM IST
Image

UP's public debt to rise Rs 6.11 trn in FY22, driven by Covid-19 impact

Topping the debt is market borrowings of more than Rs 4.18 trillion by the state government and its agencies.

Updated On : 14 Mar 2021 | 6:45 PM IST
Image

Fiscal doves in India: right and wrong

The idea that fiscal prudence and welfare of the less well-off are mutually exclusive is misplaced

Updated On : 17 Feb 2021 | 4:09 AM IST
Image