The government’s interest outgo, as percentage of its revenue receipts, rose to 35.72 per cent in FY24 from 35.35 per cent in FY23 and 33.99 per cent in FY22, according to the CAG report on compliance of the Fiscal Responsibility and Budget Management Act for 2023-24 presented in Parliament recently.
Another important indicator of the government's fiscal health is the interest payment-to revenue receipt ratio, which had hit a record 38.66 per cent in FY21, during the COVID-19 pandemic.
However, the government debt, as a percentage of GDP, moderated steadily from the pandemic peak of 61.38 per cent in FY21 to 57 per cent as of March 2024, a press release from CAG said.
The pace of accumulation of central government debt between FY21 and FY24 was lower than the GDP expansion, the constitutional body said in its report.
"Debt sustainability, as measured by the debt stabilisation indicator, was positive in FY24, which is a positive indicator towards stability,” it added.
ALCHEMPro News Desk (DS)
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