Though the Centre may manage to achieve the debt-to-GDP ratio target of.....per cent by FY 2023, the states achieving the 20 per cent target looks difficult as most of them have not budgeted so far, warned a report.

BANKING GENERAL KNOWLEDGE

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Though the Centre may manage to achieve the debt-to-GDP ratio target of____per cent by FY 2023, the states achieving the 20 per cent target looks difficult as most of them have not budgeted so far, warned a report.

A	25 per cent
B	60 per cent
C	30 per cent
D	40 per cent

Explanation:

Detailed explanation-1: -The General Government Debt to GDP ratio increased from 75.7% of end-March 2020 to 89.6% at the end of the pandemic year FY21. It is estimated to decline to 84.5% of GDP by end-March 2022. The emphasis on capex-led growth will enable India to keep the growth-interest rate differential positive.

Detailed explanation-2: -As per the latest target of the FRBM Act: Government is required to limit the fiscal deficit to 3% of the GDP by March 31, 2021. Government is required to limit debt of the central government to 40% of the GDP by the year 2024-25.

Detailed explanation-3: -The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Government. C. As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.

Detailed explanation-4: -India Government debt accounted for 54.9 % of the country’s Nominal GDP in Sep 2022, compared with the ratio of 56.3 % in the previous quarter.

There is 1 question to complete.