Debt increased by 71% in 5 years, address it in budget: Cong to govt
New Delhi: Holding government led by Prime Minister Narendra Modi responsible for unprecedented increase in national debt, the Congress on Tuesday alleged that the government's debt has increased to 71.5 per cent in 5.5 years due to mismanagement of the economy whereas the per capita GDP rose by only 30 per cent. The Congress has also asked the Modi government to address the concern in this budget.
"As the national debt per capita increases, the likelihood of the government defaulting on its debt service obligation increases, and therefore, the RBI will have to raise the yield on newly issued treasury bonds to attract new investors," said Congress spokesperson Gaurav Ballabh, adding that the increase in the rate of per capita debt (10.3 per cent) is twice as compared to the rate of per capita GDP (5.3 per cent) in CAGR terms.
"We ask PM and FM, there is no increase in income, no employment, no new investment. How will we bear the burden of this increasing debt? Also, why should the people of India bear the burden of the failures of the BJP government? In Budget of 2020-21, please address this concern," he told reporters.
"In the last 5.5 years, the country's debt has shown an increasing trend in terms of absolute amount. In March 2014, the total debt was Rs 53.11 lakh crore, whereas in September 2019 the same has increased to Rs 91.01 lakh crore. An increase of 37.9 lakh crore (71.36 per cent) in absolute terms," he said.
The Congress leader further said that the national debt per capita, which was Rs 41,200 in 2014, has increased to Rs 68,400 in 2019, an increase of 66 per cent in absolute terms and a CAGR increase of 10.3 per cent.