**Policy Summary: Per Capita Debt Burden in India (July 28, 2025)**
This document responds to Lok Sabha Unstarred Question No. 1265 regarding India's per capita debt burden. As of March 31, 2025 (provisional), the per capita debt liability of the Union Government, including Public Account liability, stood at ₹132,059.66.
The interest paid on government loans over the past three years and the current financial year is as follows (in lakh crore):
* 2022-23: ₹9.29
* 2023-24: ₹10.64
* 2024-25 (Provisional): ₹11.18
* 2025-26 (Budget Estimates): ₹12.76
The Union Budget 2025-26 proposes to reduce the fiscal deficit as a percentage of GDP from 4.8 percent (revised estimates in 2024-25) to 4.4 percent in 2025-26. The government aims to maintain a declining trajectory for the Central Government debt from 2026-27 until 2030-31, with a target to reduce the debt to approximately 50 percent of GDP by March 31, 2031. This strategy is intended to mitigate debt service pressures on the domestic economy and its citizens.
The per capita debt liability was calculated by dividing the Union Government debt liability (including Public Account liability as of March 31, 2025 provisional) by the population estimate for 2024-25, based on data released by the National Statistics Office.
Minister responsible: Shri Pankaj Chaudhary, Minister of State in the Ministry of Finance.
Key Entities Referenced
Ministry of Finance: A department of the Government of India responsible for financial matters.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
Lok Sabha: The lower house of the Parliament of India.
Shri Arun Kumar Sagar: Member of Parliament who posed the question about per capita debt burden.
Shri Pankaj Chaudhary: Minister of State in the Ministry of Finance who provided the answer.
Union Budget 202526: The annual financial statement presented by the Government of India for the fiscal year 2025-2026.
National Statistics Office: Agency that released the population data used for calculating per capita debt.
Gross Domestic Product (GDP): A monetary measure of the market value of all the final goods and services produced in a specific time period
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA
UNSTARRED QUESTION No. 1265
TO BE ANSWERED ON 28 JULY 2025/SRAVANA 6, 1947 (SAKA)
PER CAPITA DEBT BURDEN
†1265. Shri Arun Kumar Sagar:
Will the Minister of FINANCE be pleased to state:
(a) the per capita debt burden in the country as on date;
(b) the interest paid on loans during the last three years and in the current financial year; and
(c) the measures taken by the Government to reduce per capita debt?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a): The per capita debt liability of the Union Government (including Public Account liability)
as on 31st March 2025 (provisional) stood at ₹132059.66 1
(b): The interest paid on loans during the last three years and in the current financial year is as
follows:
Financial Year Interest paid on the Government of India liability (in
₹ lakh crore)
2022-23 9.29
2023-2024 10.64
2024-25 (Provisional) 11.18
2025-26 (Budget Estimates) 12.76
(c): Union Budget 2025-26 has proposed to reduce the fiscal deficit as a per cent of GDP from
4.8 per cent (revised estimates) in 2024-25 to 4.4 per cent in 2025-26, which will help to reduce
the Union Government liabilities as a per cent of GDP. The Government has also indicated that
it would endeavour to maintain a declining trajectory for the Central Government debt from
2026-27 till 2030-31 and bring the debt down to about 50±1 per cent of GDP by 31 March 2031,
thereby not increasing the debt service pressures for the domestic economy and citizens.
***
1 Union Government debt liability including Public Account liability as on 31st March 2025 (provisional) is divided
by the population estimate for 2024-25, which has been taken from the data released by the National Statistics
Office.