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Country’s debt higher than its GDP

March 16, 2015
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Country’s debt higher than its GDPEven after all the short-term loans with commercial banks in India have been cleared, the total liability of the economy has reached a size that is higher than the total value of all the goods and services in the country today.

The economy today, according to the latest central bank bulletin, is indebted to the tune of US$ 1.8B, which is Nu 113B at an exchange rate of Nu 63 a dollar. This is the total amount of money the economy has borrowed from abroad and needs to pay back.

On the other hand, the total worth of the economy, measured by Gross Domestic Product was recorded at Nu 104B. This means, total liability is higher than the total size of the economy by around Nu 9B.

Of the total debt, rupee debt stood at Rs 74B with the remaining classified under convertible currency debt.

 

 

 

 

 

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