Covid-19 pandemic pushes Union govt's debt past Rs 100-trillion mark

Sudden jump of Rs 7 trillion in Q1 pushed debt to record; enhanced borrowing this year will add to the debt stock by FY21-end, weakening its sustainability

For the first time, the outstanding debt of the central government crossed the Rs 100-trillion mark ($1.26 trn at current exchange rate), at the end of June.
 

A quarterly report by the finance ministry’s department of economic affairs (DEA) shows while debt was rising gradually, the sudden jump of Rs 7 trillion in the first quarter of this fiscal year (April-June 2020, or Q1) — accentuated by the Covid-19 pandemic — pushed it beyond the Rs 100 trillion mark. This number is inclusive of the liabilities towards the public account, which comprises reserve funds and deposits, securities against special subsidies,