The Indian economy has a large overhang of public debt and there is a need to focus on reducing this in the next four to five years, Economic Affairs Secretary Subhash Chandra Garg said on Saturday.
Pointing out that the fiscal deficit was moving towards the ideal level of 3% of the GDP and inflation was moderate, Mr. Garg also said India’s macroeconomic parameters were among the best globally.
“Whether you look at fiscal deficit, or you look at the inflation management or reserves. Fiscal deficit.. we are very close to now coming to 3% level considered ideal.
We still have an overhang of a very large public debt... maybe in next four to five years. That is the area where we will need to focus,” Mr. Garg said at FICCI’s Annual General Meeting here.
Ratings agencies have raised concerns over the level of public debt and refrained from upgrading the sovereign rating of the country.
