Overview

• An EPBD report says per-capita public debt has climbed to Rs318,252 from Rs90,047 a decade ago, reflecting average annual growth of 13%.
• The debt ratio stands at 70.2% of GDP, breaching the 60% ceiling under the Fiscal Responsibility Act, with regional comparisons of India at 57.1%, Bangladesh at 36.4%, and Sri Lanka at 96.8%.
• Interest payments consume 7.7% of the economy, leaving limited room for development and infrastructure spending.
• A 71% rupee depreciation since 2020 has inflated external liabilities by 88% in local-currency terms.
• EPBD urges broadening the tax net and cutting the policy rate from 11% to 9%, estimating Rs1.2 trillion in interest savings and warning of a deeper crisis without fiscal discipline.