Govt debt likely to breach 90% of GDP this year, says IMF report

The Centre's debt was at 58.8 per cent of GDP in FY21. It fell slightly to 57.6 per cent in the first quarter of FY22

The International Monetary Fund (IMF) has projected the government debt, including that of the Centre and the states, to rise to a record 90.6 per cent of gross domestic product (GDP) during 2021-22 against 89.6 per cent in the previous year. It will then moderate to 88.8 per cent during FY23, but will remain over 85 per cent during the next five years — till 2026-27, the IMF said in its latest Fiscal Monitor.

Before Covid-19 hit the country, the government debt remained less than 80 per cent in the recent past. For instance, it was 74.1 per cent during