This document summarizes the Indian government's borrowing and debt management strategy, as presented in response to Lok Sabha Unstarred Question No. 3971 on August 18, 2025. It outlines historical borrowing amounts, projected borrowings for FY 2025-26, measures to ensure borrowing sustainability, and interest payment liabilities.
**Key Data:**
* **Total Borrowings (FY 2013-14 to FY 2025-26):** The total borrowings (internal and external sources) ranged from ₹5.03 lakh crore in FY 2013-14 to ₹18.18 lakh crore in FY 2020-21. Provisional Actuals (PA) for FY 2024-25 stand at ₹15.77 lakh crore, and Budget Estimates (BE) for FY 2025-26 project ₹15.69 lakh crore.
* **Projected Borrowings (FY 2025-26):** Gross market borrowings for FY 2025-26 are projected at ₹14,82,000 crore, with net market borrowings projected at ₹11,53,833.94 crore.
* **Debt Sustainability Measures:** The government aims to consolidate its debt through fiscal deficit management, targeting a debt-to-GDP ratio of approximately 50.1% by March 31, 2031.
* **Interest Payment Liability:** The total interest payment liability as a percentage of revenue receipts has fluctuated, ranging from 34.98% (FY 2016-17) to 41.61% (FY 2020-21). The Budget Estimate for FY 2025-26 is 37.32%.
Key Entities Referenced
Ministry of Finance: A ministry within the Government of India responsible for financial matters.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy and development.
Lok Sabha: The lower house of the Parliament of India.
Ms Sayani Ghosh: The Member of Parliament who raised the question regarding government borrowing and debt management.
SHRI PANKAJ CHAUDHARY: The Minister of State in the Ministry of Finance who provided the answer to the question.
Financial Year 2013-14: The fiscal year starting April 1, 2013, and ending March 31, 2014, used as a reference point for government borrowing data.
Financial Year 2025-26: The fiscal year starting April 1, 2025, and ending March 31, 2026, for which projected borrowings and interest payments are discussed.
31st March, 2031: The target date for achieving a debt to GDP level of about 50 percent as part of the government's debt consolidation path.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 3971
TO BE ANSWERED ON MONDAY, THE 18th August, 2025
SRAVANA 27, 1947 (SAKA)
Government Borrowing and Debt Management
3971. Ms Sayani Ghosh:
Will the Minister of FINANCE be pleased to state:
(a) the total amount of borrowings taken by the Government since FY 2013-14
including internal and external sources, year-wise;
(b) the projected gross and net market borrowings for the financial year 2025–26;
(c) the measures taken by the Government to ensure that borrowing remains within
sustainable limits and does not impede out private investment; and
(d) the total interest payment liability as a percentage of revenue receipts for the said
period and its estimated trend in 2025–26?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a): The year-wise total amount of borrowings taken by the Government since FY 2013-
14 is given in the table-1.
Table 1: Borrowing of the Union Government (₹ in lakh crore)
Financial Year Internal sources External Sources Total Borrowing
2013-14 4.96 0.07 5.03
2014-15 4.98 0.13 5.11
2015-16 5.20 0.13 5.33
2016-17 5.18 0.18 5.36
2017-18 5.83 0.08 5.91
2018-19 6.44 0.06 6.49
2019-20 9.25 0.09 9.34
2020-21 17.48 0.70 18.18
2021-22 15.48 0.36 15.85
2022-23 17.01 0.37 17.38
2023-24 16.00 0.55 16.55
2024-25 (PA) 15.30 0.47 15.77
2025-26 (BE) 15.45 0.23 15.69(b): The projected gross and net market borrowings for the financial year 2025–26 is
₹14,82,000 crore and ₹11,53,833.94 crore, respectively.
(c): In the Budget Speech for the FY 2024-25 (Regular) and Budget Speech for the FY
2025-26, the Government announced a new debt consolidation path. Accordingly, the
Government aims to keep fiscal deficit in each year in such manner that the Central
Government debt is on declining path to attain debt to GDP level of about 50±1 percent
by 31st March, 2031.
(d): The total interest payment liability as a percentage of revenue receipts from
financial year 2013-14 is as follows:
Interest payment as %
Financial Year
of Revenue Receipts
2013-14 36.88
2014-15 36.54
2015-16 36.96
2016-17 34.98
2017-18 36.85
2018-19 37.52
2019-20 36.34
2020-21 41.61
2021-22 37.12
2022-23 38.96
2023-24 38.98
2024-25 (P) 36.76
2025-26 (BE) 37.32
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