The Growth of Indian Public Debt: Dimensions of the Problem and Corrective Measures

Author/Editor:

Raja J. Chelliah

Publication Date:

July 1, 1991

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper traces the causes of the rapid growth of India’s public debt, with special reference to internal debt. It then demonstrates that the growth of debt would become unsustainable by the end of the 1990s if the present trends continue. It develops a methodology to iterate the path of growth of debt to discover the sustainable level of the primary deficit. Finally, it suggests concrete measures to bring down the primary deficit.

Series:

Working Paper No. 1991/072

Subject:

Domestic debt Economic sectors Expenditure External debt Interest payments Public debt Public enterprises

English

Publication Date:

July 1, 1991

ISBN/ISSN:

9781451959024/1018-5941

Stock No:

WPIEA0721991

Pages:

51

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