IDEAS home Printed from https://ideas.repec.org/h/spr/isbchp/978-981-16-7062-6_20.html
   My bibliography  Save this book chapter

Evolution of Debt and Deficit in BRICS Countries: Covid-19 Shock and Post-Covid Prospects

In: Studies in International Economics and Finance

Author

Listed:
  • D. K. Srivastava

    (EY LLP India
    Madras School of Economics (MSE))

  • Muralikrishna Bharadwaj

    (EY LLP India)

  • Tarrung Kapur

    (EY LLP India)

  • Ragini Trehan

    (EY LLP India)

Abstract

In this paper, we have analysed the evolution of government debt relative to GDP in the BRICS economies with a view to highlighting the impact of Covid and the related surges in fiscal deficits as part of fiscal stimulus on their sustainability profiles. We have highlighted the roles played by the contribution made by primary balance and the excess of growth over interest rates in the evolution of the debt-GDP ratios of these countries. We have also estimated sustainability thresholds for India and South Africa using a threshold estimation procedure. All BRICS countries except China have explicit fiscal responsibility legislations. However, the relevant norms have been thrown out of gear due to the impact of the Covid. In fact, India, Brazil and South Africa had sustainability issues even prior to the onset of Covid. China may also face sustainability issues in the post-Covid years. Russia is the only country amongst the BRICS countries which may be spared of these issues. Brazil, India and South Africa may need a persistent effort to reduce primary deficits and uplift growth rates after their economies normalize once the Covid-related issues have been overcome.

Suggested Citation

  • D. K. Srivastava & Muralikrishna Bharadwaj & Tarrung Kapur & Ragini Trehan, 2022. "Evolution of Debt and Deficit in BRICS Countries: Covid-19 Shock and Post-Covid Prospects," India Studies in Business and Economics, in: Naoyuki Yoshino & Rajendra N. Paramanik & Anoop S. Kumar (ed.), Studies in International Economics and Finance, pages 365-388, Springer.
    • Handle: RePEc:spr:isbchp:978-981-16-7062-6_20
    DOI: 10.1007/978-981-16-7062-6_20
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:isbchp:978-981-16-7062-6_20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.