National Debt
Debt & Borrowing Beginnerराष्ट्रीय ऋण
Definition
National debt (or public debt) is the total outstanding borrowings of the Central government. It includes internal debt (government securities, treasury bills, small savings) and external debt. India's total debt is expressed as a percentage of GDP — the debt-to-GDP ratio is a key fiscal health indicator.
How National Debt Appears in India's Budget
India's total Central government debt is approximately 55-57% of GDP as of 2026-27.
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Why National Debt Matters
Understanding national debt is essential for anyone following government finances, preparing for competitive exams, or analysing India's economic policy. This concept directly affects how the government allocates resources and plans its fiscal strategy.
In the context of India's Union Budget 2026-27, with a total size of Rs 53.47 lakh crore, terms like national debt help citizens and analysts evaluate whether the government is on the right fiscal path. The numbers in the budget are only meaningful when one understands the underlying concepts.
For UPSC aspirants, national debt is frequently tested in both Prelims and Mains, particularly in Paper III (Economic Development). For CA and MBA students, this concept appears in public finance and macroeconomics courses.
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