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The Growth of Indian Public Debt: Dimensions of the Problem and Corrective Measures

Author

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  • Raja J. Chelliah

Abstract

This paper traces the causes of the rapid growth of India’s public debt, with special reference to internal debt. It then demonstrates that the growth of debt would become unsustainable by the end of the 1990s if the present trends continue. It develops a methodology to iterate the path of growth of debt to discover the sustainable level of the primary deficit. Finally, it suggests concrete measures to bring down the primary deficit.

Suggested Citation

  • Raja J. Chelliah, 1991. "The Growth of Indian Public Debt: Dimensions of the Problem and Corrective Measures," IMF Working Papers 1991/072, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:1991/072
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    Cited by:

    1. Srinivasa Rao Gangadharan & Lakshmi Padmakumari, 2016. "Impact of domestic public debt on economic growth - An empirical study in the Indian context," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 6(4), pages 101-116, April.
    2. Debi Prasad Bal & Badri Narayan Rath, 2016. "Is Public Debt a Burden for India?," Economic Papers, The Economic Society of Australia, vol. 35(2), pages 184-201, June.

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