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Is India's public debt sustainable?

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  • Pradhan, Krishanu

    (Institute for Social and Economic Change)

Abstract

The paper assesses the sustainability of public debt in India based on historical time series data on non-monetized liabilities/GDP, revenue/GDP and expenditure/GDP of combined Union and State governments. The assessment based on unit root analysis of non-monetized liabilities/GDP, and co-integrating analysis of expenditure/GDP and revenue/GDP shows the sustainability of public debt, mainly on account of accelerating GDP growth, lower cost of government borrowing, favorable currency composition and longer maturity profile of debt.

Suggested Citation

  • Pradhan, Krishanu, 2014. "Is India's public debt sustainable?," Working Papers 311, Institute for Social and Economic Change, Bangalore.
    • Handle: RePEc:sch:wpaper:311
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    References listed on IDEAS

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    Cited by:

    1. Mohanty, Ranjan Kumar & Panda, Sidheswar, 2019. "How Does Public Debt affect the Indian Macroeconomy? A Structural VAR Approach," Working Papers 19/250, National Institute of Public Finance and Policy.
    2. M. R. Anantha Ramu, 2021. "Public debt sustainability in sub-national level: a case of Karnataka," Indian Economic Review, Springer, vol. 56(2), pages 463-485, December.
    3. Ranjan Kumar Mohanty & Sidheswar Panda, 2019. "How Does Public Debt Affect the Indian Macroeconomy? A Structural VAR Approach," Working Papers id:12980, eSocialSciences.

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