A Study on Indian Public Debt and Its Contrib...

A Study on Indian Public Debt and Its Contributions to GDP Growth in India

Author Name : Mahendra N N

ABSTRACT Public debt, also called “government debt” or “national debt,” includes money owed by the government to creditors within the country (domestic or internal debt) as well as to international creditors (foreign or external debt). The Central Government Debt includes all liabilities of Central Government contracted against the Consolidated Fund of India (defined as Public Debt), and liabilities in the Public Account, called Other Liabilities. Public debt is further classified into internal and external debt. Internal debt consists of marketable debt and non-marketable debt. Marketable debt comprises of Government dated securities and Treasury Bills, issued through auctions. Non-marketable debt comprises of intermediate Treasury Bills (14-day ITBs) issued to State Governments/ UT of Puducherry and select Central Banks, special securities issue against small savings, special securities issued to public sector banks/ EXIM Bank, securities issued to international financial institutions, and compensation and other bonds.