India’s Debt Estimated at 62% of GDP at End of FY22: Ministry of Finance
The Indian government debt is estimated at 62% of gross domestic product (GDP) as of March 31, 2022, the finance ministry announced on Monday at Lok Sabha.
In a written response, Minister of State for Finance Pankaj Chaudhary said the government has taken a series of measures to control the country’s debt burden.
“Increasing the dynamism of tax revenues through better compliance, mobilizing resources through monetization of assets, improving the efficiency and effectiveness of public spending, etc.” are the important measures taken by the government to control the budget deficit and the debt burden, âChaudhary said.
In her budget speech, Finance Minister Nirmala Sitharaman set the Centre’s budget deficit for fiscal year 2021-2022 at 6.8% of GDP. However, according to Fitch Ratings, the government can improve its budget deficit target to 6.6% of GDP in FY22 thanks to stronger-than-expected revenue momentum.
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When asked about the government’s ability to repay debt, Chaudhary said that the Centre’s debt is mostly held in national currency and it is able to repay it.
Responding to a separate question, he said the Indian economy is expected to grow 9.5% in FY 22 according to the Reserve Bank of India estimates.
“According to the IMF’s October 2021 World Economic Outlook (WEO) update, India is expected to grow 9.5% in 2021 and 8.5% in 2022, the highest among the big savings over the two years, âChaudhary said.
India’s GDP grew 8.4% in the July-September fiscal 22 quarter, according to data released last week.
On Sunday, the Ministry of Finance informed that more than 3 crore of tax returns had been filed on the new portal of the Department of Income Taxes, and urged taxpayers who have not yet filed their returns for the year 2021-2022 tax to do so as soon as possible.
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