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Public Debt Ratio
Why is it in news?
- According to IMF, India’s public debt ratio is projected to jump by 17% to almost 90% because of an increase in public spending due to COVID-19.
Details:
- India’s public debt ratio has remained stable at about 70% of the GDP since 1991, before it increased due to covid-19.
- The increase in public spending, in response to the pandemic, and the fall in tax revenue and economic activity, will make public debt jump by 17%.
- However, it is projected to stabilise in 2021.