Budget 2021: Govt's high debt may not warrant sovereign rating cut

Experts waiting for a debt management road map in Budget

India may not face cuts in sovereign ratings just because its debt to gross domestic product (GDP) ratio is likely to move closer to 90 per cent in the current fiscal year and the liabilities may remain high even during next fiscal year because of the demand for fiscal expansion.

However, there has to be a credible debt management road map once the economy returns to its normal level, experts have cautioned.

The upcoming Budget may give some signals on that path, they projected. The Union government’s debt touched 56.2 per cent of GDP as of September 30 this fiscal