India\'s high debt-to-GDP ratio acceptable in times of Covid\, say analysts

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India's high debt-to-GDP ratio acceptable in times of Covid, say analysts

However, Centre and states must have a clear road map on what the extra borrowing will be spent on, and on how they plan to return to a path of fiscal consolidation

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Coronavirus | COVID-19 | Indian Economy

Arup Roychoudhury  |  New Delhi 

A number of economists, experts and agencies have warned that India’s debt-GDP (gross domestic product) ratio could rise up to as high as 90 per cent in 2020-21, with the Centre and states borrowing more than budgeted as a revenue crunch sets in.

This compares to the existing levels of nearly 70 per cent, and the Fiscal Responsibility and Budget Management Act’s medium-term stated target of 60 per cent. However, some of the same experts say that at a time of deep global slowdown due to the Covid-19 pandemic, and the eight-week nationwide lockdown in India – which is ...
First Published: Wed, June 24 2020. 17:36 IST