The report is an annual review of FRBM Act’s compliance by the CAG, prescribed under FRBM Act, 2003.
- FRBM Act was enacted to promote long-term macroeconomic stability and inter-generational equity through reduction of deficit and thereby debt.
Key Highlights of the Report
- Central Government Debt as Percent of GDP: Consistently declined to 57% of GDP (end-March 2024) from 61.38% in FY 2020-21.
- Government Debt Accumulation: Pace of accumulation of Central Government Debt between FY 2020-21 to FY 2023-24 was less than the GDP expansion, which indicates that economy has grown to be able to absorb and service the accumulated debt.
- Debt Sustainability Analysis (DSA): Public debt repayment to Public debt receipts ratio reduced from 86.66% in FY 2019-20 to 81.46% in FY 2023-24.
Targets under FRBM Act
Central Government shall ensure by end of FY 2024-25 that:
- General Government debt (Central Government Debt and State Governments Debt) does not exceed 60 % of GDP.
- Central Government debt does not exceed 40% of GDP.
- Limit the fiscal deficit (FD) up to 3% of GDP by 31st March 2021.
- However, government has committed to attain FD lower than 4.5% of GDP by FY 2025-26.
- Not give additional guarantees with respect to any loan on security of the Consolidated Fund of India in excess of one-half per cent of GDP, in any financial year.