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India's debts in the last 20 years: The debt on the country is continuously increasing. This year the debt on the central government increased by Rs 50 crore. It has become 172 lakh crore. Which is 58.2 percent of the country's total GDP. If the figures of the state government's debt are also included in this, then there will be a huge increase. India's debt has often been a topic of discussion. When the government expenditure exceeds its revenue, it borrows. This borrowing is known as government debt. It is of two types – one is borrowing from its own country and the other is borrowing from another country.
The country's debt will double in six years
The debt of the central government is increasing every year. Currently, according to the figures presented by Minister of State for Finance Pankaj Chaudhary in the Lok Sabha, the country will spend Rs 200 crore in 2018-19. The debt was Rs 93.26 lakh crore. Which will increase to Rs 185.27 lakh crore by 2024-25. That is, the 49.3 percent increase in GDP in 2018-19 will become 56.8 percent in 2024-25. The debt will double in six years
The country has faced many challenges in the last six years
According to the government, many economic challenges were seen in the last six years. The debt has increased due to the government increasing expenditure to meet the needs of the people. Finance Minister Nirmala Sitharaman said that India's position is better than other countries. Because, India's foreign debt is only 18.7 percent. Which is much less than China, Thailand, Turkey, Vietnam, South Africa and Bangladesh. India is the third country with the lowest debt in terms of total foreign debt in proportion to GDP.
Increase in debt due to corona pandemic
Before the Corona epidemic, in 2019-20, the government debt had increased by Rs 20,000 crore. 105.07 lakh crore. Which was 52.3 percent of the country's GDP. During Corona, in 2020-21, Rs. 121.86 lakh crore. The reason behind this was the increase in government expenditure on relief packages and financial assistance. In 2021-22, Rs. 138.66 lakh crore.
How much did the debt increase during the NDA government? Find out…
In 2014, the NDA government led by Prime Minister Narendra Modi came to power for the first time. According to the Department of Economic Affairs, as of March 31, 2014, the country had a debt of Rs. 54 lakh crore. Which was half of the GDP in the first term of the NDA government. In the second term, by March 2024, the debt burden increased to Rs. 20 crore. 172 lakh crore. That is, in 10 years of the NDA government, the debt burden on the country increased three times.
The debt burden increased two and a half times during the UPA government
The Congress-led UPA government was in power from 2004 to 2014. Meanwhile, the debt rose to Rs. 20 lakh crore. However, the debt-GDP ratio continued to decline later. This trend continued till 2017. In the 10 years of the UPA government, the debt burden on the country increased by two and a half times to Rs. 54 lakh crore.
What problems arise from rising government debt?
, When the debt on the government increases, it has to face many problems. The biggest problem is to manage the economy. If a government has too much debt, it is not in a position to spend money in good or bad times. Which makes it difficult to manage the economy.
, If the government has more debt, other countries will feel that India is very risky, so they will not lend money to India at low interest. This makes the government pay more interest. If the government takes more debt, future generations will have to repay more debt. The government has given a lot of money to the banks, the burden of which will also fall on future generations.
, When the government borrows too much, the liquidity in the market decreases, due to which private companies are not able to invest as much as they want to. Due to which the country's economy can slow down. When private companies are not able to invest money, as a result they are not able to expand their business, bring new technology and are not able to do good work, then this can weaken the country's economy. Along with this, its effect is also being seen on banks and other financial institutions.
, It is necessary to take loans for the development of the country. Most of the world's big economies run on loans. Taking loans is not bad, but its proper use is necessary. As the debt on the country has increased, the size of the economy has also increased.