The Growth of Indian Public Debt: Dimensions of the Problem and Corrective Measures

July 1, 1991

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Raja J. Chelliah The Growth of Indian Public Debt: Dimensions of the Problem and Corrective Measures, (USA: International Monetary Fund, 1991) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper traces the causes of the rapid growth of India’s public debt, with special reference to internal debt. It then demonstrates that the growth of debt would become unsustainable by the end of the 1990s if the present trends continue. It develops a methodology to iterate the path of growth of debt to discover the sustainable level of the primary deficit. Finally, it suggests concrete measures to bring down the primary deficit.

Subject: Domestic debt, Economic sectors, Expenditure, External debt, Interest payments, Public debt, Public enterprises

Keywords: Capital formation, Deadweight debt, Domestic debt, GDP ratio, Interest payment, Interest payments, Private sector, Public enterprises, Rate of interest, RBI credit, Treasury bills debt Rb, WP

Publication Details

Pages:

51
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1991/072
Stock No:

WPIEA0721991
ISBN:

9781451959024
ISSN:

1018-5941

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