The report highlights an alarming surge in global public debt and proposes a plan to revamp the global financial system to tackle the current debt crisis. 

• Public debt refers to general government domestic and external debt.

Key Highlights of the Report

• Debt surge: In 2023, global public debt reached a historic peak of $97 trillion.
• Drivers: Cascading crises and sluggish and uneven performance of the global economy. 
• Regional Disparity: Public debt in developing countries (accounting for 30% of the global total) is rising at twice the rate of developed countries.
  • In 2023, India’s public debt reached US$ 2.9 trillion, accounting for 82.7% as a share of GDP. 

Implications of high public debt:

• High fiscal burden: More than half of developing countries allocate at least 8% of government revenues to interest payments.
• Decreased developmental spending: 3.3 billion individuals reside in nations where interest payments exceed spending on education and health combined.
• Climate inaction: Interest outweighs climate investments in emerging and developing countries.

Roadmap to finance sustainable development:

• Inclusive International Financial Architecture with increased participation of developing countries in its governance.
• Provide greater liquidity in times of crisis expanding contingency finance through IMF instruments.
• Scaling up affordable long-term financing through transformation and expansion of Multilateral Development Banks.