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Public debt

About Public debt

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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

In Japan, 7-Eleven stores have become a cultural touchstone, known for a ready supply of fresh food and everything from toothpaste to socks

Updated On: 15 Oct 2024 | 11:11 AM IST

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

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

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

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

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

High public debt remains a risk

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

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

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

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

But govt asserts public debt is sustainable

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

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

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

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

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

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

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

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

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

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

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

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

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

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