This document presents the Indian government's response to Lok Sabha Starred Question No. 354, concerning the outstanding loan debt of the government. The Finance Minister, Smt. Nirmala Sitharaman, provides data on loan debt for the past ten years and the current year (2025-2026), details of outstanding loan debt for the last financial year (2024-2025), and details of loan debt repayment and interest payments over the same period.
Key data points include:
* **Fiscal Deficit and Outstanding Debt:** The fiscal deficit and stock of outstanding debt are detailed year-wise from FY 2015-16 to Budget Estimates for FY 2025-26.
* **Debt Consolidation:** Post-COVID-19, the government has consolidated debt from 61.4% of GDP in 2020-21 to 56.1% of GDP in Budget Estimates for 2025-26.
* **Debt Reduction Target:** The government aims to reduce the central government debt to approximately 50% of GDP by March 31, 2031.
* **Outstanding Debt (FY 2024-25 Provisional Actuals):** Total outstanding loan debt is provisionally estimated at 185.94 lakh crore, comprising 157.11 lakh crore in internal debt, 8.74 lakh crore in external debt, and 20.09 lakh crore in other liabilities under the Public Account.
* **Loan Debt Repayment and Interest:** Data on loan debt repayment and interest payments are provided year-wise from FY 2015-16 to Budget Estimates for FY 2025-26. For FY 2024-25 (Provisional Actuals), loan debt repayment was 11.16 lakh crore, and interest payment was 4.16 lakh crore. The Budget Estimate for FY 2025-26 projects loan debt repayment at 12.76 lakh crore and interest payment at 4.61 lakh crore.
Key Entities Referenced
Ministry of Finance: A ministry within the Government of India responsible for economic and financial matters.
Department of Economic Affairs: A department under the Ministry of Finance responsible for formulating and monitoring economic policies and programs.
Lok Sabha: The lower house of the Parliament of India.
SMT. NIRMALA SITHARAMAN: The Finance Minister of India.
Dr. M K VISHNU PRASAD: The individual who asked the question in the Lok Sabha.
Gross Domestic Product: A monetary measure of the market value of all the final goods and services produced in a specific time period.
2024-2025: Financial year for which outstanding loan debt is provisionally estimated.
31st March, 2031: The target date for achieving a debt to GDP level of about 50 percent.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA
STARRED QUESTION NO. *354
TO BE ANSWERED ON MONDAY, THE 18th August, 2025
SRAVANA 27, 1947 (SAKA)
Outstanding Loan on Government
*354 Dr. M K VISHNU PRASAD:
Will the Minister of FINANCE be pleased to state:
(a) the amount of loan/debt on the Government during the last ten years and the current
year, year-wise;
(b) the details of outstanding loan/debt during the last financial year; and
(c) the details of the repayment of such loan/debt and interest thereon during the last ten
years and the current year?
ANSWER
THE FINANCE MINISTER
(SMT. NIRMALA SITHARAMAN)
(a) to (c): A statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (C) IN RESPECT
OF LOK SABHA STARRED QUESTION NO. 354 FOR ANSWER ON 18.08.2025
REGARDING OUTSTANDING LOAN ON GOVERNMENT ASKED BY Dr. M K
VISHNU PRASAD.
(a): The amount of loan/debt on the Government during the year, commonly known a fiscal
deficit and the stock of outstanding debt is at table-1. Post Covid-19, the Government has
consolidated the debt from 61.4% of GDP in 2020-21 to 56.1% of GDP in BE 2025-26.
Further, 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.
Table 1: The amount of loan/debt on the Union Government (₹ in lakh crore)
Amount of loan/debt Outstanding debt Outstanding
Financial
during the year as on 31st March debt % of GDP
Year
(Fiscal Deficit) of FY
2015-16 5.33 70.98 51.5%
2016-17 5.36 74.94 48.7%
2017-18 5.91 82.87 48.5%
2018-19 6.49 93.26 49.3%
2019-20 9.34 105.07 52.3%
2020-21 18.18 121.86 61.4%
2021-22 15.85 138.66 58.8%
2022-23 17.38 156.13 58.1%
2023-24 16.55 171.70 57.0%
2024-25(PA) 15.77 185.94 56.0%
2025-26(BE) 15.69 200.16 56.1%
Note: PA is Provisional Actuals; BE is Budget Estimate
(b) The outstanding loan/debt at the end of FY 2024-25 is provisionally estimated at
₹185.94 lakh crore. The details are as under:
Amount (₹ in lakh crore)
Internal Debt 157.11
External Debt 8.74
Other Liabilities (Public Account 20.09
Liabilities)
Total 185.94
External Debt at exchange rate as on March 31, 2025(c): Repayment of such loan/debt and interest payment in the last ten years and the
current year are at table 2.
Table 2: Repayment of loan/debt and interest payment (₹ in lakh crore)
Financial Year Repayment of loan/debt* Interest on outstanding
loan/debt**
2015-16 4.42
1.67
2016-17 4.81
2.01
2017-18 5.29
1.64
2018-19 5.83
1.79
2019-20 6.12
2.70
2020-21 6.80
2.62
2021-22 8.05
3.00
2022-23 9.29
3.53
2023-24 10.64
4.88
2024-25(PA) 11.16
4.16
2025-26(BE) 12.76
4.61
Note: PA is Provisional Actuals; BE is Budget Estimate
*Repayment includes repayment of Market Loan and External Loan.
**Includes interest payment on debt contracted in the past as well.
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