Opinion |
Globally public debt, i.e. the total borrowing incurred by a government, is mounting. The International Monetary Fund (IMF) Global Financial Stability Report, published in April 2022 revealed that in the emerging market economies, the average ratio of public debt to GDP (gross domestic product) rose to a record 67% last year. Public debt to GDP surged in advanced economies too, from 103% in 2019 to 123% in 2020, before declining to 115% of GDP in 2022. India registered a significant increase in this ratio, from 75.1% in 2019 to 90.1% in 2020. However, it is expected to decline to 85.3% by 2025, as per the recent IMF Fiscal Monitor.
