What is Public Debt, and how does the Debt-to-GDP Ratio work?
- Posted on December 18, 2024
- By Business News Today
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What is Public Debt, and how does the Debt-to-GDP Ratio work?
![](https://img.etimg.com/thumb/msid-116420464,width-1200,height-630,imgsize-198012,overlay-economictimes/articleshow.jpg)
India's public debt, a mix of internal and external borrowing, is used to fund developmental projects when government revenue falls short. The debt-to-GDP ratio, a key indicator of economic health, decreased to 18.7% in March 2025. The government continues efforts to manage this ratio, aiming for a target of 60% as recommended by the NK Singh Committee.