Managing public debt

India needs structural changes in economic management

The economic disruption caused by the spread of Covid-19 has increased budget management difficulties across the world. While the shutdown caused by the pandemic is affecting revenues, governments need to spend on containing the virus and support those who have been displaced by the economic disruption. As a result, the budget deficit and public debt are likely to go up in most countries. According to the International Monetary Fund, global government debt will cross the 100 per cent of gross domestic product (GDP) mark in the current year, compared with the level of about 83 per cent in 2019. The