Are you willing to Pay it ?
Let me ask IMF or World Bank then
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In 2014, the Indian government owed about ₹62 lakh crore in total debt, but by 2024, this debt is expected to rise to nearly ₹182 lakh crore. This means the government's debt has almost tripled in 10 years.
Most of this debt comes from borrowing money within the country, which went from around ₹60 lakh crore in 2014 to nearly ₹176 lakh crore by 2024. The money borrowed from other countries also increased, but it's a smaller part, rising from ₹1.88 lakh crore to ₹5.74 lakh crore.
This big jump in debt suggests that the government has been borrowing a lot more to pay for things like development projects, public services, or to cover shortfalls in its budget. While borrowing can help fund important work, too much debt can become a problem if it’s hard to pay back in the future.
- AI
Political dangal karne ke liye Anjana Goswami aur Arnab Kashyap hein na?
Unka domain expertise jyada hai.
By the way, leverage as a concept is much more complex.
So is the concept of fiscal deficit financing.
Iss liye it is not like.. Pehle meri height itni thi.. abb itni hai.. X is greater than Y so life at so and so stage was better.
Too many factors are there.
Rather than speaking about absolute no of loan it's better to speak about the no as percentage of gdp because the economy in 2000s isn't the same in 2024
The 2024 national debt is around 80% of gdp
This is solely national gdp and there are state debts + indian corporate debt + psu debt (practically it's national debt but masked artificially) +household debt
The no isn't alarmingly high despite showing it at 80% of gdp because a fair thumb rule is 4x of the gdp is considered for indian level of economy growth stage in development note this is middle view and there are both optimistic and pessimistic nos which vary a bit but not that much radically different
Second thing net external debt is also a criteria which us imp to arrive at debt burden since that's totally market based credit within long term credibility of a nation
The external debt to gdp ratio is around 20% which is very low by any view
So debt of indian govt isn't a worry having said that the more concerning worry is high cost of capital I'm the economy including for govt due to various factors including the credit exposure- economy components-global views - demographics- monetary policy etc
The other thing to worry is CURRENT ACCOUNT DEFICIT which is highly negative in indian scenario
And Fiscal deficit is also a fairly good position and govt has committed to make it even better
The other ALARMING issue is PENSIONS which due to recent changes to ups Is long term negative which would add atleast double digits to overall debt
If you ask me borrowing of loan amount for any country (not only india) dont matter to individuals, it only matters to GDP on the whole
only if ratio of loan to GDP ratio gets to mismatch then only the problem arises with consequences of inflation and people will bare the tax and more heavy burden in it
but if borrowing is in control to GDP i.e in some good ratio to GDP , then borrowing is healthy LEADING TO EXPONENTIAL GROWTH
and Govt releases this borrowing info during Budget every year (i started to dive in this recently maybe when i become a successsful economist i might delve more into this hehehe)
Side note: every govt in any country, keeps tabs on "Borrowing Vs GDP" always to keep country safe in good growth trajectory:)
and one important thing is where that borrowed money is used plays the future of a country
Here are the debt-to-GDP ratios of some countries:
Japan: 261.29%
Italy: 144.41%
United States: 121.31%
France: 111.8%
United Kingdom: 101.36%
Spain: 111.6%
Sweden: 32.69%
South Africa: 71.12%
India:83.13%
Nothing is concerning for India. As debt is in control.
Data - 2014 | 2024
---
In 2014, the Indian government owed about ₹62 lakh crore in total debt, but by 2024, this debt is expected to rise to nearly ₹182 lakh crore. This means the government's debt has almost tripled in 10 years.
Most of this debt comes from borrowing money within the country, which went from around ₹60 lakh crore in 2014 to nearly ₹176 lakh crore by 2024. The money borrowed from other countries also increased, but it's a smaller part, rising from ₹1.88 lakh crore to ₹5.74 lakh crore.
This big jump in debt suggests that the government has been borrowing a lot more to pay for things like development projects, public services, or to cover shortfalls in its budget. While borrowing can help fund important work, too much debt can become a problem if it’s hard to pay back in the future.
- AI
Rather than speaking about absolute no of loan it's better to speak about the no as percentage of gdp because the economy in 2000s isn't the same in 2024
The 2024 national debt is around 80% of gdp
This is solely national gdp and there are state debts + indian corporate debt + psu debt (practically it's national debt but masked artificially) +household debt
The no isn't alarmingly high despite showing it at 80% of gdp because a fair thumb rule is 4x of the gdp is considered for indian level of economy growth stage in development note this is middle view and there are both optimistic and pessimistic nos which vary a bit but not that much radically different
Second thing net external debt is also a criteria which us imp to arrive at debt burden since that's totally market based credit within long term credibility of a nation
The external debt to gdp ratio is around 20% which is very low by any view
So debt of indian govt isn't a worry having said that the more concerning worry is high cost of capital I'm the economy including for govt due to various factors including the credit exposure- economy components-global views - demographics- monetary policy etc
The other thing to worry is CURRENT ACCOUNT DEFICIT which is highly negative in indian scenario
And Fiscal deficit is also a fairly good position and govt has committed to make it even better
The other ALARMING issue is PENSIONS which due to recent changes to ups Is long term negative which would add atleast double digits to overall debt