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India’s Public Debt Level Among The Emerging Economies

India’s Public Debt:

As per Moody’s Investors Service, India’s public debt level is among the highest in emerging economies with a quantitative easing programme underway, while its debt affordability is among the weakest.

  • Public debt is the total amount borrowed by the government of a country.
  • In the Indian context, public debt includes the total liabilities of the Union government that have to be paid from the Consolidated Fund of India. It excludes liabilities contracted against Public Account.
  • Sources of Public Debt:
    • Dated government securities or G-secs
    • Treasury Bills or T-bills
    • External Assistance
    • Short term borrowings
    • Public Debt definition by Union Government
  • The Union government describes those of its liabilities as public debt, which is contracted against the Consolidated Fund of India. This is as per Article 292 of the Constitution.
  • Internal debt is categorized into marketable and non-marketable securities.
    • Marketable government securities include G-secs and T-Bills issued through auction.
    • Non-marketable securities include intermediate treasury bills issued to state governments, special securities issued to the national Small Savings Fund among others.

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