Jump in public debt signals India's deteriorating fiscal health

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Jump in debt signals India's deteriorating fiscal health
ndia's government debt continued to pile up last quarter, underscoring the fast deteriorating fiscal health of Asia's third largest economy.

The total public debt of the government (excluding liabilities that are not classified under public debt) rose by 3.6 per cent to Rs 39,00,386 crore in Q2 fiscal 2013 from Rs 37,63,264 crore in the previous qaurter.

In the April-June 2012 period, the Indian government's debt burden rose by 5.2 per cent.

"This represented a Quarter-on-Quarter increase of 3.6 per cent (provisional) compared with an increase of 5.2per cent in the previous quarter (Q1 of FY 13)," the Quarterly Report on Debt Management released by the Finance Ministry said on Friday.

The internal debt of the Indian government accounted for 90.4 per cent of total public debt at the end of Q2 fiscal 2013, up from 89.6 per cent at the end of the previous quarter.

The internal debt of the Indian government, which stood at Rs 35,27,405 crore last quarter, accounted for 34.7 per cent of the nation's GDP in Q2 fiscal 2013, up from 33.2 per cent in the previous quarter.

The Indian government had a comfortable cash position last quarter.

Read more about: fiscal health
Story first published: Saturday, October 27, 2012, 9:30 [IST]
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