[July 2020] Govt. of India Total Liability/Debt

Question 1

Formula for total debt

Answer 1

• Internal Debt (1) + External Debt (2) + Public Account Liabilities (3) + Such financial liabilities of any corporate or other entity owned/controlled by the Central Government, which the Govt. has to repay (4)
• Internal Debt (1) plus External Debt (2) = Public Debt (of Govt. of India) = 90.9% of the total Debt

Question 2

What is 4th point in formula for total debt?

Answer 2

• is also called Off-Budget Liabilities.
• When GoI forces a PSU to borrow for GoI’s scheme, then that borrowing is in the name of PSU but is paid by govt. So its a part of Govt of India’s Debt but it is not counted in Govt of India’s fiscal deficit of that year