Key Points
The big pandemic stimulus and the contraction in the economy worsened the combined Centre and state debt-to-GDP ratio to 89.2% in FY21 from 75.1% in FY20..
The International Monetary Fund (IMF) has forecast the ratio will improve to 83.5% of GDP in FY23 and gradually ease from FY26 onwards.Getty.
ImagesThe outlay for FY24, too, is up 37.4% from the revised estimate for this fiscal, way above the 7.5% rise in overall spending...
The Centre is looking to limit the increase in its borrowing below the rise in nominal gross domestic product (GDP) over the medium term to reduce the public debt burden and lower interest payments, people familiar with the development said...
The ratio of interest payments to the Centre's tax revenue (net of states' share) is estimated to rise to 46.3% in FY24 from 45.1% (revised estimate) this fiscal year...
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