As the government's revenue from taxes and other sources fall short of its spending requirements, the government resorts to borrowings from markets and external sources. Public debt is the total liabilities of the central government contracted against the Consolidated Fund of India. It is further classified into internal & external debt. Internal debt is categorised into marketable and non-marketable securities. Marketable government securities include G-secs and T-Bills issued through auction. Non-marketable securities include intermediate treasury bills issued to state government's, special securities issued to national Small Savings Fund among others. Based on the spending targets and likely resource mobilisation on tax and non-tax front, the government announces its borrowing programme for the fiscal in the Budget. What is the size of Public Debt? The size of the government debt is important as a sizeable chunk of annual payments (around 25 per cent) is just the interest … [Read more...] about What constitutes Public Debt?
Debt budget planner
NEW DELHI: Public debt of the central government rose by 2.53 per cent to Rs 65.65 lakh crore in the July-September quarter compared to the previous quarter. "The Public Debt (excluding liabilities under the 'Public Account') of the central government provisionally increased to Rs 65,65,652 crore at end-September 2017 from Rs 64,03,138 crore at end-June 2017," the Quarterly Report on Public Debt Management for July-September 2017 said. Internal debt constituted 93 per cent of public debt at end-September 2017, while marketable securities accounted for 82.6 per cent of public debt. About 27.8 per cent of outstanding stock has a residual maturity of up to five years at end-September 2017, which implies that over the next five years, on an average, around 5.56 per cent of outstanding stock needs to be repaid every year. "Thus, rollover risk in the debt portfolio continues to be low," the report said. During the second quarter, the government issued dated securities worth Rs 1.89 lakh … [Read more...] about Government’s public debt rises by 2.53% in July-September quarter
Softening the demonetisation blow, the Budget for 2017-18 on Wednesday halved the tax to 5 per cent on incomes up to Rs 500,000 but proposed a new surcharge of 10 per cent on incomes between Rs 50 lakh and Rs 1 crore and raised duties on cigarettes and pan masala while stepping up allocations for infrastructure, rural, agriculture and social sectors. … [Read more...] about HIGHLIGHTS: Union Budget 2017-18
In the paper titled "India's Great Slowdown: What happened? What's the way out?", Arvind Subramanian, along with IMF's former India head Josh Felman, discuss the reasons for India's current economic slowdown. The paper argues that India's "growth is feeble, worse than it was in 1991 or indeed at any other point in the past three decades," both Subramanian and Felman state that the economy is headed for an Intensive Care Unit. He argues that India is facing four balance sheet challenge. What is the 'four balance sheet challenge'?In his latest paper named 'India’s Great Slowdown', Arvind Subramanian mentions the new ‘Four balance sheet challenge’. The Four Balance Sheet challenge includes the original two sectors - infrastructure companies and banks, plus NBFCs and real estate companies. Where do the roots lie?The roots of India's Four balance sheet challenge can be traced back to the Twin balance sheet problem. Subramanian discussed the twin balance sheet challenge … [Read more...] about What is four balance sheet problem?
"A person should buy everything by first saving and then buying, rather than buying on credit. If cards are used, it should only be for convenience. Debit cards will fit the bill here. There are many wallets like Paytm, Phone pe and others, which are very convenient and do not create liability," Sadagopan said. … [Read more...] about Got a new job? Check out these five money tips