Economy

Debt-to-GDP ratio of States worrying: RBI

The combined debt-to-GDP ratio of states is expected to remain at 31% by end-March 2022, which is worryingly higher than the target of 20% to be achieved by 2022-23, according to an RBI report.

In view of the pandemic induced slowdown, in its projections, the 15th Finance Commission expects the debt-GDP ratio to peak at 33.3% in 2022-23 (in view of the higher deficits in 2020-21, 2021-22 and 2022-23), and gradually decline thereafter to reach 32.5% by 2025-26, RBI said in its ‘State Finances: A Study of Budgets of 2021-22’ report.


Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Jan 22, 2022 9:11:56 AM | https://www.thehindu.com/business/Economy/debt-to-gdp-ratio-of-states-worrying-rbi/article37793343.ece

Next Story