Centre’s debt rose by 174% between 2013-14 & 2022-23, external debt by 100%

Central authorities’s debt within the final 9 years has risen 174 per cent, whereas there was a 100 per cent improve in external debt throughout the identical interval, i.e., between 2013-14 and 2022-23. External debt is a element of Central authorities’s total debt.

According to the Finance Ministry, Central authorities’s debt was Rs 58.6 lakh crore (52.2 per cent of GDP) as on March 31, 2014, which went up by 174 per cent to Rs 155.6 lakh crore (57.1 per cent of GDP) as on March 31, 2023.

Similarly, the federal government’s external debt was Rs 3,74,484 crore in 2013-14, which shot up by 100 per cent to Rs 7,48,895 crore in 2022-23. Government’s external debt is financed primarily by multilateral and bilateral businesses.

Meanwhile, between 2019-20 and 2020-21, there was a pointy rise of 16 per cent in Central authorities’s debt, which official sources mentioned was primarily as a result of Coronavirus pandemic that massively disrupted projections of Centre’s public funds.

At the tip of 2019-20, the Central authorities’s debt was Rs 105.1 lakh crore, which elevated by 16 per cent to Rs 121.9 lakh crore on the finish of 2020-21.

Despite the rise in Central authorities’s debt during the last 9 years, official sources mentioned that the danger profile of Centre’s debt stands out as protected and prudent when it comes to accepted parameters of indicator-based method for debt sustainability.

Government debt is held predominantly in home forex.

(With inputs from IANS)