In the September quarter, the total debt of the country, represented by outstanding bonds in the market, increased to $2.47 trillion (Rs 205 trillion), as reported. This marked a rise from the previous fiscal’s March quarter, where the total debt was $2.34 trillion (Rs 200 trillion). The central government’s debt, specifically, climbed from $1.06 trillion (Rs 150.4 trillion) in March to $1.34 trillion (Rs 161.1 trillion) in September, according to data shared by Vishal Goenka, Co-Founder of Indiabonds.com, citing information from the Reserve Bank of India.
Indiabonds.com, a Sebi-registered online bond platform launched in 2021, compiled the report using data from the Reserve Bank of India, Clearing Corporation of India, and the Securities and Exchange Board of India. The central government’s debt now constitutes the largest portion, holding a 46.04% share of the total debt at Rs 161.1 trillion. State governments contribute to 24.4% of the total, amounting to $604 billion (Rs 50.18 trillion).
The report breaks down the components of the total debt. Treasury bills, valued at $111 billion (Rs 9.25 trillion), make up 4.51% of the total debt. Corporate bonds, with a 21.52% share, account for $531 billion (Rs 44.16 trillion) in the second quarter of the current fiscal year.
This rise in the country’s debt raises concerns, prompting attention from the International Monetary Fund (IMF), which recently alerted the Indian government about the escalating debt situation. The government is now under pressure to address this issue and take necessary measures for financial stability. As the debt levels continue to increase, it becomes crucial for authorities to implement effective strategies to manage and alleviate the growing economic burden.