Statsguru: State govts' debt on a risky path amid Covid-19 crisis

The Covid-19 crisis has put nations in a fix with the International Monetary Fund saying that global government debt may cross the level of 100 per cent of the size of the world economy this year. In India, the combined outstanding debt stock of the Union and state governments is estimated to be Rs 147 trillion at the end of March 2020, a level that is about three-fourths of its gross domestic product (GDP). It has worsened from 67 per cent of GDP five years ago (chart 1) to 72 per cent now, when it should have been on its path of gradual decline towards 60 per cent by 2024-25. A t.....

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