In the end, India will still be trapped in debt

[Skull and Bones]

The figures are alarming, but the trend is reassuring.

Its stable, and on its way to being reduced. I think the Modi govt. target is 60%.

The target should be much lower than that, for a developing economy with a GDP/capita at around 1800.

 

[MagicMarker]

How will u read it? Please explain

Isn't the chart self explanatory ?

69.6 reduced to 69.5.

Deficit reduction is considerable.

Tax base has been broadened considerably.

GST is being implemented.

The target should be much lower than that, for a developing economy with a GDP/capita at around 1800.

60% is a realistic target for the next two three years.

Modi govt. can focus on bringing it to 50% in its next term.

Remember, this is during a time when there is global slow down.

By all standards, its a pretty good show. I can always be better, but its not bad.

 

[ashok321]

Measly Indian budget, out of which 25% goes towards the interests?
Lol

What is GOI's revenue?

Let the Italian think tank explain:

https://twitter.com/x/status/852974748967587840

 

[Skull and Bones]

Measly Indian budget, out of which 25% goes towards the interests?
Lol

What is GOI's revenue?

Let the Italian think tank explain:

https://twitter.com/x/status/852974748967587840

The valuation of Aramco is more than South Korean economy, what's your point?

 

[GodToons]

I laid the emphasis on a founder, one who is BJP MP.

And you can not tell me I was wrong.
I never came upon the ownership issue.

Now you calling names a la moron means you are begging me to ignore you.

You are done.
You wont be missed, you joker.

Seems Congress founded by Britisher (as per your logic) is responsible for all this mess along with hiding petrol subsidy it gave in 2012 - 2014. They are anti Indian and enemy to people of India. Kush raha bhai

 

[EndangeredSpecies]

Blithe comparisons to the US miss or wilfully ignore the crucial fact that the US borrows money at 1-3% interest rate, while India borrows at 7-9%. So though the US' debt is higher than India's, its interest payments are lower. Only 6% of the US federal budget goes to interest payments, while for India it is 25%. The US also borrows in its own currency, a luxury no other nation enjoys.

This is the biggest piece of lie in the article. Clearly author has ABSOLUTELY NO IDEA of how government debt works.

The deficit of a government is picked up by sourcing funds from two distinct sources. First the bonds issued to public -- remember the NHAI, NPCL, NTPC, Airport authority of India etc etc bonds issued sometimes back in 2013 or so? Yes those are the source for these funds. These bonds are always over subscribed for a reason. They are fairly high paying safe bonds backed by the government. These bonds are ALWAYS in INR and NOT in USD there by debunking the whole 'not payable in local currency' bullshit this illiterate author is paddling.

Perhaps the debt he is so bothered about is called 'External Sovereign debt'. This debt is in USD. However there is more to this story.
This debt is around 465 billion USD for India in Jan 2017 and is falling ever since. 465 billion usd will be around 21 % or so of our GDP and currently it is among the lowest in emerging markets.

http://timesofindia.indiatimes.com/...-lowest-among-83-EMs/articleshow/53434904.cms

And here is more fun!

Our foreign currency reserve is north of 370 billion dollars and is growing:

https://tradingeconomics.com/india/foreign-exchange-reserves

Meaning! If we want to reduce this debt, we can decimate it to 465 - 365 = 100 billion dollars. Less than 5% of our GDP and still have some change left in our foreign reserve.

As they say, they hung the picture because they could not hang the painter. This author deserve to be printed with words like Liar on his face instead of his authorship. Those of believe these lies are well, morons.

 

[ashok321]

This is the biggest piece of lie in the article. Clearly author has ABSOLUTELY NO IDEA of how government debt works.

The deficit of a government is picked up by sourcing funds from two distinct sources. First the bonds issued to public -- remember the NHAI, NPCL, NTPC, Airport authority of India etc etc bonds issued sometimes back in 2013 or so? Yes those are the source for these funds. These bonds are always over subscribed for a reason. They are fairly high paying safe bonds backed by the government. These bonds are ALWAYS in INR and NOT in USD there by debunking the whole 'not payable in local currency' bullshit this illiterate author is paddling.

Perhaps the debt he is so bothered about is called 'External Sovereign debt'. This debt is in USD. However there is more to this story.
This debt is around 465 billion USD for India in Jan 2017 and is falling ever since. 465 billion usd will be around 21 % or so of our GDP and currently it is among the lowest in emerging markets.

http://timesofindia.indiatimes.com/...-lowest-among-83-EMs/articleshow/53434904.cms

And here is more fun!

Our foreign currency reserve is north of 370 billion dollars and is growing:

https://tradingeconomics.com/india/foreign-exchange-reserves

Meaning! If we want to reduce this debt, we can decimate it to 465 - 365 = 100 billion dollars. Less than 5% of our GDP and still have some change left in our foreign reserve.

As they say, they hung the picture because they could not hang the painter. This author deserve to be printed with words like Liar on his face instead of his authorship. Those of believe these lies are well, morons.

Look at the total Indian debt of 68% (latest) figures.
Loan is a loan, you have to pay interest upon.
Thats the reason GOI is paying 25% interest (combined of both rupee + $ loans)
Now this 25% is a hefty amount that goes out of India's budget = Indian progress.

Meaning! If we want to reduce this debt, we can decimate it to 465 - 365 = 100 billion dollars. Less than 5% of our GDP and still have some change left in our foreign reserve.

On this I have to simply laugh at you.
This FOREX is included in GOI's balance sheet.
Hence the net debt stands out as it is.
Lol

If only the things were so simple.

 

[utraash]

The OP starter should hold round of discussion in Janta Darbar of his ring master AK 47 instead posting on PDF, the only panacea he can eventually foresee & suggest is loud mouth of his ring master. This post must have consumed his significant time of a day just to show how poor Modi policies are.

Bhaiaya ask bijli paani leaders why we have frequent power cuts in different parts of Delhi these days.

 

[jetray]

Look at the total Indian debt of 68% (latest) figures.
Loan is a loan, you have to pay interest upon.
Thats the reason GOI is paying 25% interest (combined of both rupee + $ loans)
Now this 25% is a hefty amount that goes out of India's budget = Indian progress.




On this I have to simply laugh at you.
This FOREX is included in GOI's balance sheet.
Hence the net debt stands out as it is.
Lol

If only the things were so simple.

lol, there was no debt before modi. It was called external borrowing, now they got to know it is called as debt. evolution of words or .....?

 

[MagicMarker]

Look at the total Indian debt of 68% (latest) figures.
Loan is a loan, you have to pay interest upon.
Thats the reason GOI is paying 25% interest (combined of both rupee + $ loans)
Now this 25% is a hefty amount that goes out of India's budget = Indian progress.

Did you just pull out that number from your @ss ?

These are the real figures.

Interest payment is 18%.

But more important is the fact that ALL MGNREGA spending is on BUILDING INFRASTRUCTURE.

Asset development gives better returns than the interest payed on borrowed capital.

That is how the economy works and that is why govt. borrow money.

That is why business borrow money from the bank, because they profit they make is MORE than the Interest they pay.

 

[EndangeredSpecies]

Look at the total Indian debt of 68% (latest) figures.
Loan is a loan, you have to pay interest upon.
Thats the reason GOI is paying 25% interest (combined of both rupee + $ loans)
Now this 25% is a hefty amount that goes out of India's budget = Indian progress.




On this I have to simply laugh at you.
This FOREX is included in GOI's balance sheet.
Hence the net debt stands out as it is.
Lol

If only the things were so simple.

Dear gentle sir! you are wrong on both the counts. Lets see how.

1.

Loan is a loan, you have to pay interest upon.
Thats the reason GOI is paying 25% interest (combined of both rupee + $ loans)
Now this 25% is a hefty amount that goes out of India's budget = Indian progress.

You are absolutely right that a debt is a debt and needs to be paid back, however, the important point is the currency. The article stated that entire national debt needs to be paid in USD and india cannot get a cheaper loan due to its credit rating. This is patently false! A vast majority of the national debt is INR and is internal or domestic debt which government, if it chooses to, can easily handle. How so you may ask!

RBI has a very powerful tool in its hand that is called the interest rate. Global interest rates are very low at this moment. So all Indian government has to do, if it becomes desparate to clear the debt, is to lower the interest rate substantially within country and issue marginally higher tax free bonds to raise funds. This will take care of all the domestic debt within country without effecting the currency rate. It is noteworthy though that this will be a desparate measure. I believe it is not required right now.

It is also noteworthy that a debt in USD is a bigger risk due to currency volatility, something which vast majority of Indian debt is not as it is in INR only.

2.

On this I have to simply laugh at you.
This FOREX is included in GOI's balance sheet.
Hence the net debt stands out as it is.
Lol

If only the things were so simple.

Again here you are wrong, my dear gentle sir. There is not exactly a 'balance sheet' of Indian government. What you are alluding to is perhaps Annual Financial Statement issued as a part of budget (http://indiabudget.nic.in/afs.asp) .

Both this statement and other places as well do not account for forex reservers while accounting external debt (which is what I am referring to in my post). Obviously, you will not believe me, right? I am no authoritative economist, or a journalist, right?

So let me present you a newspaper article from economic times
http://economictimes.indiatimes.com...ather-currency-storm/articleshow/53017673.cms


"India's foreign exchange reserves are at a comfortable 65 per cent of total external debt while China's forex reserve stands at over 400 per cent of its total debt. "

Which corroborates to what I have posted. India's external debt of 465 billion can be easily mitigated to a mere 5 % of GDP by our forex reserve covering now 79 % of our external debt. And no!, if you are looking at external debt that does not automatically takes forex reserve into account.

 

[Nilgiri]

Lets play the game who does "Ashok" have on ignore already and who will it put on ignore further because of the pain it gets in the butt from this thread

That list is growing much faster than Indian debt lol.

 

[ashok321]

@EndangeredSpecies

The article stated that entire national debt needs to be paid in USD

Show me where did the article say as above?

 

[EndangeredSpecies]

@EndangeredSpecies

Show me where did the article say as above?

I had quoted it already, but for your convenience, my learned sir, here it is again!

Blithe comparisons to the US miss or wilfully ignore the crucial fact that the US borrows money at 1-3% interest rate, while India borrows at 7-9%. So though the US' debt is higher than India's, its interest payments are lower. Only 6% of the US federal budget goes to interest payments, while for India it is 25%. The US also borrows in its own currency, a luxury no other nation enjoys.

These statement taken together mean only one thing. India's interest on her debt is bound to be at 7-9%, India cannot arrange for fund at lower and India, unlike US, does not have luxury to borrow in her own currency. Implying her debt is in USD.
All of them are patently false.

 

[ashok321]

I had quoted it already, but for your convenience, my learned sir, here it is again!



These statement taken together mean only one thing. India's interest on her debt is bound to be at 7-9%, India cannot arrange for fund at lower and India, unlike US, does not have luxury to borrow in her own currency.
All of them are patently false.

Now I see that you are making things up to prove your point.

The author never said anything as such on India paying back its loan in USD.
It is not possible, because the author himself has said in the beginning that India has borrowed locally as well from overseas.

So how will the author commit such a blunder to say that the national debt needs to be paid in USD?

This is falsehood coming from you.
He never said it.
He can not.
If he would lie this way, then his profession is finished.
He is balanced because he has also blamed the previous government.
So you accusing the author of misleading puts your own credibility at stake if any.

I reiterate, he never said it, and you never proved it.
Period.

Everything can be examined.
Its in black & white.