India’s Public Debt Ratio projected to increase
- Posted By
17th Oct, 2020
- As per the International Monetary Fund (IMF), India’s public debt ratio is projected to increase by 17% to almost 90% because of an increase in public spending due to Covid-19.
- The ratio is projected to stabilise in 2021.
- It will slowly decline up to the end of the projection period, in 2025.
- The pattern of public debt in India is similar to the pattern around the world.
- This debt-to-GDP ratio is used to compare a country’s public debt to its GDP.
- It is often expressed as a percentage.
- By comparing what a country owes (debt) with what it produces (GDP), the debt-to-GDP ratio indicates a particular country’s ability to pay back its debts.
- A country with a high debt-to-GDP ratio finds it difficult to pay off public debts.