(a) whether both internal and external debts are at a galloping rate;
(b) if so, the details thereof during each of the last three years;
(c) the interest paid thereon during each of the last three years; and
(d) the steps taken by the Government to reduce the internal and external debts?
Minister of State in Ministry of Finance (SHRI S.S. PALANIMANICKAM)
(a),(b)& (c): The stock of internal debt on Central Government account and India`s total external debt together with interest paid thereon during the last three years are given in the following Table.
Table: Internal and External debt of India
Debt Outstanding Increase over Interest the year Paid A. Internal debt of Central Government (RS. Crore) 2002-03 10,20,689 1,07,628 98,555 2003-04 11,41,706 1,21,017 1,03,123 2004-05 (RE) 12,70,272 1,28,566 1,00,399
B. India`s Total External debt (US$ million)(d) Government has been following the policy of fiscal prudence which aims at higher tax revenues and moderation in the growth of non-plan expenditure so as to reduce the revenue deficit and gross fiscal deficit thereby containing borrowings. Government is committed to eliminating revenue deficit and moderating public debt in a time-bound manner. Similarly, prudent external debt management policies pursued by the Government have helped in maintaining a comfortable external debt position. These policies include emphasis on raising funds on concessional terms with longer maturities, close monitoring of short-term debt, prepaying high cost loans and encouraging non-debt creating capital flows.
2002-03 104,958 6,115 3,708 2003-04 111,715 6,757 4,401 2004-05 (P) 123,454 11,739 3,746
RE: Revised Estimate, P: Provisional