Centre refutes IMF's debt warning, recalls ‘far worse’ conditions of US, China
1 year ago

Centre refutes IMF's debt warning, recalls ‘far worse’ conditions of US, China

Hindustan Times  

The Indian government's debt-to-GDP ratio projection by the International Monetary Fund exceeding 100% by 2027-28 is “misconstrued”, the Union finance ministry said while adding that the predictions by the UN's financial body correspond to a worst-case scenario which is not a “fait accompli”, or not something that cannot be revived. In its so-called annual Article IV review, the IMF predicted that India's general debt would exceed 100% of its GDP under adverse circumstances by fiscal 2028. “It is also noteworthy that the same report indicates that under favourable circumstances, the general government debt to GDP ratio may decline to below 70 per cent in the same period,” the ministry said in a statement. The ministry also pointed out that the general government debt, which includes both states and the Centre, has come down to 81% in the 2022-23 financial year from 88% in the 2020-21 FY.

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History of this topic

Central government debt set to double to ₹185 trillion by FY25 amid fiscal challenges and policy shifts
4 months, 3 weeks ago

Central government debt set to double to ₹185 trillion by FY25 amid fiscal challenges and policy shifts

Live Mint  

India's central government debt is projected to escalate to ₹185.27 trillion, or 56.8% of GDP, by the financial year 2024-25, up from ₹93.26 trillion, or 49.3% of GDP, in 2018-19, the minister of state for finance Pankaj Chaudhary said in a written reply to the Lok Sabha on Monday. This projected increase in debt follows a significant rise over the …

Govt Estimates Centre's Debt To Rise To Rs 185 Lakh Cr In FY25
4 months, 3 weeks ago

Govt Estimates Centre's Debt To Rise To Rs 185 Lakh Cr In FY25

News 18  

The government estimates its debt, including external borrowing, valued at current exchange rate and public account and other liabilities will increase to Rs 185 lakh crore, or 56.8 per cent of the GDP, during the current fiscal year. The total debt stood at Rs 171.78 lakh crore, or 58.2 per cent of the gross domestic product, at the end of …

Rising US debt risk bad for its own and global economy
5 months, 3 weeks ago

Rising US debt risk bad for its own and global economy

China Daily  

A teller counts and arranges dollar notes at an Agricultural Bank of China branch in Qionghai, Hainan province. The International Monetary Fund recently warned that the excessive fiscal deficit and debt scale of the United States are posing a growing risk to its own and the global economy, urging the US to solve this long-standing problem as soon as possible. …

India should bring back fiscal positions to pre-pandemic levels: IMF
6 months, 2 weeks ago

India should bring back fiscal positions to pre-pandemic levels: IMF

Deccan Chronicle  

Chennai: The International Monetary Fund has advised countries, including India, which have elections this year, to begin fiscal consolidation in order to bring fiscal positions back to pre-pandemic levels. When asked about the concern IMF expressed about the governments being tempted to increase public spending during election years in countries, including Mexico and India, Julie Kozack, Director of the Communications …

Debt, fiscal challenges facing low-income countries worry IMF
8 months ago

Debt, fiscal challenges facing low-income countries worry IMF

The Hindu  

Shareholders of the International Monetary Fund agreed on the importance of addressing challenges faced by low-income countries, many of which are facing unsustainable debt burdens, IMF Managing Director Kristalina Georgieva said on April 19. Impact of high debt levels on low-income countries Ms. Georgieva, in a meeting of the Global Sovereign Debt Roundtable hosted by the IMF and the World …

RBI Rejects IMF Warning of India's Debt to GDP Exceeding 100%
10 months ago

RBI Rejects IMF Warning of India's Debt to GDP Exceeding 100%

Deccan Chronicle  

Mumbai: Spending on social and physical infrastructure, climate mitigation,digitalisation and skilling the labour force can yield long-lasting growth dividends. Using a dynamic stochastic general equilibrium model, the economists found that if the government expenditure is directed towards employment-generating sectors, climate risk mitigation and digitalisation, the debt-GDP ratio of the general government can decline substantially to 73.4 per cent of GDP …

India’s Markets Are Turning Into an Inexorable Force
11 months, 1 week ago

India’s Markets Are Turning Into an Inexorable Force

Bloomberg  

Anyone wondering whether the India juggernaut is sustainable will find the answer in bonds, which have a penchant for discerning the way of the world and telling every other market what to do. At least $1 trillion of government securities traded multiple times annually in the most populous nation and biggest democracy are poised to become the darling of international …

'Still below debt level of 2002,' India terms IMF's latest report 'misconstrued'
1 year ago

'Still below debt level of 2002,' India terms IMF's latest report 'misconstrued'

India TV News  

India has said that certain projections made by the International Monetary Fund on alleged government debt vulnerabilities do not reflect the factual position adding that it has done relatively well and is still below the debt level of 2002. The IMF in one of its latest reports projected that the general government debt will exceed 100 per cent of the …

From deflation to high debt burden: Here’s 5 things happening in Chinese economy
1 year, 1 month ago

From deflation to high debt burden: Here’s 5 things happening in Chinese economy

Live Mint  

China is facing the challenges of an economic deceleration and a substantial debt crisis within its real estate industry. “Combating persistent disinflation amid weak demand remains a challenge for Chinese policymakers,” Bruce Pang, chief economist for Greater China at Jones Lang LaSalle Ltd told Bloomberg. Better growth forecasts- Despite a slowdown, the future doesn't look very bleak for the Chinese …

China's great wall of debt driving ‘unsustainable’ increase in borrowing, IMF warns
1 year, 3 months ago

China's great wall of debt driving ‘unsustainable’ increase in borrowing, IMF warns

The Telegraph  

China is driving global debt back towards unsustainable levels amid an “unparalleled” borrowing binge by property developers and local governments, according to the International Monetary Fund. The IMF warned that a declining global debt share in 2022 risked being just a “pandemic blip” and said there was an urgent need to “restore fiscal sustainability”. “Global debt, which remained significantly higher …

India's external debt at USD 624.7 bn within comfort zone, says FM Sitharaman
1 year, 3 months ago

India's external debt at USD 624.7 bn within comfort zone, says FM Sitharaman

Hindustan Times  

India's external debt of USD 624.7 billion at March-end 2023 with a debt-service ratio of 5.3 per cent is within the comfort zone and modest from a cross-country perspective, Finance Minister Nirmala Sitharaman has said. The report said the debt service ratio during 2022-23 has increased marginally to 5.3 per cent from 5.2 per cent during the previous year, mainly …

How does US debt rank compared with the rest of the world?
1 year, 6 months ago

How does US debt rank compared with the rest of the world?

Al Jazeera  

The United States has the world’s highest national debt at $31.4 trillion. Global debt currently stands at $305 trillion, $45 trillion higher than before the COVID-19 pandemic, according to the Institute of International Finance – a global association of the financial industry. The IIF predicts that global debt will continue to rise as government borrowing remains high, affected by factors …

India likely to have stable debt-to-GDP ratio going forward, says IMF official
1 year, 8 months ago

India likely to have stable debt-to-GDP ratio going forward, says IMF official

Deccan Chronicle  

WASHINGTON: India is expected to have a stable debt-to-GDP ratio going forward, a senior official from the International Monetary Fund said on Wednesday and recommended rationalization and simplification of Goods and Services Tax. According to Paolo Mauro, Deputy Director of the IMF Fiscal Affairs Department, there will be a gradual resumption of the rise in the global public debt-to-GDP ratio …

IMF head expects less than 3% global economic growth in 2023
1 year, 8 months ago

IMF head expects less than 3% global economic growth in 2023

Associated Press  

WASHINGTON — The International Monetary Fund chief said Thursday the world economy is expected to grow less than 3% this year, down from 3.4% last year, increasing the risk of hunger and poverty globally. Kristalina Georgieva said the period of slower economic activity will be prolonged, with the next five years of growth remaining around 3%, calling it “our lowest …

Debt load may pose threat to nations: PM
1 year, 9 months ago

Debt load may pose threat to nations: PM

Live Mint  

Prime Minister Narendra Modi cautioned on Friday that unsustainable debt levels posed a threat to the financial stability of nations and called upon G20 finance ministers and central bank governors to work towards restoring stability, confidence, and growth to the global economy. International Monetary Fund managing director Kristalina Georgieva said on Thursday that the IMF, World Bank and India’s G20 …

China in Quandary as Pakistan Faces Debt Default After Steep Fall in Forex Reserves
1 year, 10 months ago

China in Quandary as Pakistan Faces Debt Default After Steep Fall in Forex Reserves

News 18  

Watching warily Pakistan plunging into the worst economic crisis with prospects of defaulting on foreign loans, China which holds Islamabad’s largest debt on Monday said it backed measures taken by its “all-weather friend” to tide over the disastrous situation and hoped it will, in the end, pull through. Pakistan’s current account deficit shrank 90.2 per cent to USD 0.24 billion …

Amid Pakistan crisis, IMF says China must change its debt policy
1 year, 10 months ago

Amid Pakistan crisis, IMF says China must change its debt policy

Live Mint  

International Monetary Fund Managing Director Kristalina Georgieva, in an interview with CBS's 60 Minutes on February 5, stated that China's finance minister and Central bank governor would participate in a roundtable with other creditors and other borrowing countries in February in India. About a quarter of China's GDP comes from the real estate sector, which has slowed the country's economic …

Budget 2023 may peg gross borrowing under ₹16 trillion: Report
1 year, 10 months ago

Budget 2023 may peg gross borrowing under ₹16 trillion: Report

Live Mint  

India's federal government is likely to keep its gross market borrowing below ₹16 trillion for 2023/24 as it does not want to destabilise the bond market with any negative surprises, two sources close to the deliberations said. The government has so far raised ₹12.93 trln up to Jan. 27, which is 91% of the overall gross borrowing target of ₹14.21 …

India’s credit worthiness stable compared to negative outlook for the world: Moody’s
1 year, 11 months ago

India’s credit worthiness stable compared to negative outlook for the world: Moody’s

Live Mint  

NEW DELHI: The outlook on credit worthiness outlook for sovereigns in the Asia-Pacific region, including India, for 2023 is stable, compared to the negative outlook for sovereigns elsewhere, said rating agency Moody’s Investors Service on Monday. “The debt sustainability and financial stability are relatively well anchored in the region, with contained government liquidity risks, broadly stable debt dynamics and generally …

Centre destroying spirit of federalism: KCR
2 years, 4 months ago

Centre destroying spirit of federalism: KCR

Deccan Chronicle  

Hyderabad: Soon after Prime Minister Narendra Modi underscored the fight against 'parivaarvaad' and corruption in his Independence Day speech, Chief Minister K. Chandrashekar Rao lashed out at the BJP-led Centre, accusing it of destroying the "spirit of federalism." In his Independence Day speech at Golconda Fort on Monday, Rao accused the Centre of conspiring to weaken states economically by imposing …

India’s debt to GDP ratio is now at a 14-year high
3 years, 5 months ago

India’s debt to GDP ratio is now at a 14-year high

Live Mint  

NEW DELHI : The Union government's debt soared to 58.8% of the gross domestic product in the fiscal year ended March from 51.6% a year ago as the economic contraction forced the government to borrow a record amount to meet a revenue shortfall, finance ministry data showed, prompting experts to raise concerns over debt sustainability in the medium term. The …

Government debt-to GDP ratio to be at 80% by FY30: Report
4 years, 3 months ago

Government debt-to GDP ratio to be at 80% by FY30: Report

Deccan Chronicle  

Chennai: India’s general government debt-to-GDP ratio is likely to be at 80 per cent of GDP by FY30 and is unlikely to fall to the 60 per cent target even by FY40. India’s general government debt-to-GDP ratio is likely to be at 80 per cent of GDP by FY30 and is unlikely to fall to the 60 per cent target …

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