New Delhi: The Congress claimed Tuesday that the country’s debt increased by over 71 per cent in the last 5.5 years whereas the per capita GDP rose by only 30 per cent and asked the Modi government to address the concern in this fiscal’s budget.
Congress spokesperson Gourav Vallabh said the increase in the rate of per capita debt (10.3 pc) is twice as compared to the rate of per capita GDP (5.3 per cent) in CAGR terms.
“We ask PM and FM, there is no increase in income, no employment, no new investment. How will we bear the burden of this increasing debt? Also, why should the people of India bear the burden of the failures of the BJP government? In Budget of 2020-21, please address this concern,” Vallabh told reporters.
“In the last 5.5 years, the country’s debt has shown an increasing trend in terms of absolute amount. In March 2014, the total debt was Rs 53.11 lakh crore, whereas in September 2019 the same has increased to Rs 91.01 lakh crore. An increase of 37.9 lakh crore (71.36 per cent) in absolute terms,” pointed out Vallabh.
The Congress leader said the national debt per capita, which was Rs 41,200 in 2014, has increased to Rs 68,400 in 2019, an increase of 66 per cent in absolute terms and a CAGR increase of 10.3 per cent.
“The GDP per capita — USD 1,574 in 2014 — which is USD 2,041 in 2019, has increased only by 30 per cent and a CAGR of 5.3 per cent,” he said.
This means for every rupee earned in 2014, the debt component was 43 per cent, whereas in 2019 for every rupee earned the debt has increased to 48 per cent, claimed the Congress leader.
Vallabh asserted that national debt is an important component for managing the finances of the government of any country, as debt is generally used to bridge the gap between available reserves and long-term expenditure towards development work.
“It is very critical for every government to ensure that the total debt is well within the required limits and efficiently used for development activities and to improve the overall standard of living of the people, while also ensuring that the same is used for productive purposes basis which the improvement in GDP enables the country to repay the debt well within the period of debt,” informed Vallabh.
The foreign exchange impact is also a factor that is haunting the government, Vallabh stated and added that that since all our external debt is in USD terms, the debt per capita is continuing to rise and the brunt is being faced by the people.