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Finance Committee for stricter debt oversight
Business Standard
|March 20, 2025
The Standing Committee on Finance, in its report tabled in Parliament on Wednesday, has called for the adoption of a comprehensive and coordinated approach to monitor and manage general government debt, ensuring that both the central and state governments adhere to prudent fiscal policies.
Ajay Seth, secretary, Department of Economic Affairs (DEA), told the panel that the government's announcement to bring down the debt-to-gross domestic product (GDP) ratio to 50 per cent by 2031 would not be sufficient to reduce the overall general debt in the country, and states, too, would need to lower their debt-to-gross state domestic product (GSDP) ratio. "Our goal is 60 per cent (for general debt-to-GDP). But considering that we are at 80 per cent plus, 60 per cent is far off. First, we should come down to 75 per cent. The sta
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