Working on lowering government debt: FM

FM Sitharaman stresses need to reduce govt debt & not burden future generations. Examining ways to bring down overall debt, conscious of burden on next generations. Looking at experiments in other countries to manage debt & ensure India's aspirational requirements are met responsibly.

The government is looking to reduce its overall debt levels and has consciously chosen not to be profligate about spending so as not to burden future generations, Finance Minister Nirmala Sitharaman said on Friday.

Ms. Sitharaman also emphasised the need to ensure that global food, fertilizer and fuel supplies did not become an instrument of war and disruption and said the impact of terrorism had now become a factor that investors needed to weigh while making decisions, apart from countries’ economic openness and policies. 

“We are conscious in our decision making in matters related to macro-economic stability and the responsibility with which we deal with our fiscal management,” she said, speaking at the Kautilya Economic Conclave. “So, for every decision that we take today, we are conscious of what burden it is going to leave the next generations. It’s very easy to be profligate, and burden the coming generations with debt that will be sitting there,” she added.

Noting that the Government of India’s debt “might not be as high as it is” when compared with other countries, Ms. Sitharaman said the Finance Ministry was still actively examining ways to bring down the debt levels.

“We are consciously looking at experiments in different parts of the world and some of the data of some emerging market countries about how they are managing their debt,” the FM said. “We are looking at ways in which we can bring down the overall debt and I am sure, we are going to be very successful in that because our efforts are very well streamlined to meet India’s aspirational requirements but deal with it with a sense of responsibility, so that our next coming generations don’t feel the burden that government debt has left,” she added.