The Indian government is taking measures to bring down its overall debt levels, according to the Finance Minister. Speaking at the Kautilya Economic Conclave, she emphasized the importance of dealing with debt responsibly to avoid burdening future generations. This comes in response to concerns raised by credit rating agencies about India’s public debt, particularly as discussions about a potential sovereign credit rating upgrade take place.
Additionally, the Finance Minister highlighted the government’s cautious approach towards public spending. She stressed the need for investments in public infrastructure that yield good returns for every rupee spent, rather than simply distributing money to the people. By adhering to these principles of economics, the government aims to achieve sustainable growth and long-term economic stability.
In line with these efforts, India’s Union Budget 2023 has set an ambitious capital expenditure target of Rs 10 lakh crore, representing a 33% increase from the previous year. However, the government is also mindful of its fiscal deficit target, which stands at 5.9% of GDP for FY24. The aim is to gradually reduce this figure to 4.5% of GDP by FY26. By balancing debt reduction and strategic investment, the government seeks to successfully manage its debt levels while meeting the country’s aspirational requirements.
