Anantkumar Hegde - Parliament

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

LOK SABHA

STARRED QUESTION NO: 448

ANSWERED ON:10.12.2010

INTERNAL AND EXTERNAL DEBT

ANANT KUMAR HEGDE

(a) the agency-wise details of the internal and external borrowings of Government of India during each of the last three years and the current year;

(b) the annual amount paid by each as principal and interest separately during the same period;

(d) if so, the details thereof and the reaction of the Government in this regard?

Will the Minister of FINANCEbe pleased to state:-

ANSWER

FINANCE MINISTER

(SHRI PRANAB MUKHERJEE)

(a)to(d): A statement is placed on the Table of the House. Statement referred to in reply to Lok Sabha Starred Question No.448 for answer on December 10, 2010 raised by Shri Anantkumar Hegde and Shri Harsh Vardhan regarding ‘Internal and External Debt.’

(a): The agency-wise details of the internal borrowings (dated securities) and external borrowings of Government of India during the last three years and 2010-11 are as under:

(i)Internal borrowings (dated securities)

(Rs. in crore)

Name of the agency 2007-08 2008-09 2009-10 2010-11 (as on 6 .12.2010)

State Bank of India 38790 23076 26984 16587

Associate Banks of 2846 3067 3874 4782

State Bank of India(SBI)

Nationalized Banks 32933 41468 89828 55639

Foreign Banks 6384 7229 11260 19004

Private Sector Banks 41041 35625 40117 25674

Co-operative Banks 783 1083 2834 3719

Primary Dealers# 120170 125056 182716 194577

Life Insurance 22727 30851 45163 44343

Corporation GIC and Subsidiaries 684 700 6914 3430

Financial Institutions 210 1014 1626 287

Mutual Funds - 2194 4257 - Others 1749 637 2,427 3958

Total 268317 272000 418000 372000

# Includes Banks offering primary dealer services.

Note: The above data is based on Primary Market Auctions.

(ii)Agency-wise details of external borrowings.

(Rs. in crore) Name of the agency 2007-08 2008-09 2009-10 2010-11(BE)

International Development 3294.36 5162.37 5569.29 4102.82

Association International Bank for 3343.27 2855.25 3988.20 14820.85

Reconstruction and Development Asian Development Bank 4232.51 5886.51 4951.61 5230.36

International Fund for 90.80 51.52 66.34 165.12

Agricultural Development Government of Japan 3813.42 4278.47 6158.35 8860.91 Others 2034.28 2787.57 1443.41 1555.36

Total 16808.64 21021.69 22177.20 34735.42

External Debt are at book value

(b): Repayment of internal borrowing (dated securities), external borrowings and interest payment during the period 2007-08 to 2009-10 and Budget Estimates (BE) 2010-11 are as follows:

(i)Repayment of Internal borrowings (dated securities)

(Rs. in crore) Actuals BE 2007-08 2008-09 2009-10 2010-11

(Provisional) (Provisional)

Internal Debt 45333.25 43870.01 52576.64 112133.06

Note: Agency wise details for repayment of internal borrowings (dated securities) may not be given as the securities are tradable in nature.

(ii)Agency-wise repayment of external borrowings.

(Rs.in crore) Name of the agency 2007-08 2008-09 2009-10 2010-11 (BE)

International Development Association 2896.26 3543.70 3830.16 4055.35

International Bank for Reconstruction 1065.78 1539.02 1750.86 2161.95 and Development

Asian Development Bank 266.19 471.08 607.19 935.65

International Fund for Agricultural 41.62 47.69 50.97 54.10

Development Government of Japan 2139.86 2892.34 3152.03 3241.94

Others 1083.54 1513.19 1748.44 1822.34

Total 7493.25 10007.02 11139.65 12271.33

(iii)Payment of interest during the period 2007-08 to 2009-10 and Budget Estimates 2010-11 are as follows:

(Rs. in crore) Actuals BE 2007-08 2008-09 2009-10 2010-11 (Provisional) (Provisional) Interest 171030 192204 211643 248664

(c) and (d): As per the FRBM Rules 2004, the Central Government shall not assume additional liabilities in excess of 9% of GDP for the financial year 2004-05 and in each subsequent financial year, the limit of 9% of GDP shall be progressively reduced by at least one percentage point of GDP. During the period 2004-05 to 2009-10, the Government has achieved the target upto 2007- 08 but in the year 2008-09 and 2009-10, the target of one percent reduction could not be achieved due to fiscal measures undertaken to mitigate the adverse impact of global economic crisis on the Indian economy.

The targets fixed during the period 2004-05 to 2009-10 and targets achieved for reduction of incremental debt are as follows:

Year Target fixed (%) Achieved (%)

2004-05 9 8.0

2005-06 8 7.2

2006-07 7 6.5

2007-08 6 6.0

2008-09 5 5.8

2009-10 4 5.7

The Government is committed to revert back to the path of fiscal consolidation and accordingly the fiscal deficit is estimated to reduce to 5.5% of GDP in 2010-11. As enumerated inthe Medium Term Fiscal Policy Statement 2010-11 the fiscal deficit is estimated to further decline to 4.8% and 4.1% of GDP in 2011-12 & 2012-13 respectively thereby reducing the pace of growth of debt accretion in medium term.