Govt expects total debt as percentage of GDP to increase to 61.7% in FY22

The government has said that it expects the total debt as percentage of gross domestic product (GDP) to increase to 61.7 per cent (provisional) in 2021-22 (FY22) from 60.5 per cent (provisional) in the previous fiscal. At the same time, public debt would rise to 54.2 per cent in the current financial year from 52 per cent in 2020-21.

Minister of State for Finance Pankaj Chaudhary said the government's amendment of the FRBM Act will target a path of fiscal consolidation aimed towards reaching a level of fiscal deficit below 4.5 per cent of GDP by 2025-26.

The government expects fiscal deficit to come down to 6.8 per cent in the current fiscal from 9.3 per cent estimated for 2020-21. He added amendment to the FRBM debt targets will be in consonance with the broad fiscal deficit path.