What Level of Public Debt Could India Target? / Petia Topalova, Dan Nyberg.

Format:

Book

Government document

Author/Creator:

Topalova, Petia.

Contributor:

Nyberg, Dan.

Series:

IMF Working Papers; Working Paper ; No. 2010/007

IMF Working Papers

Language:

English

Subjects (All):

Debts, Public--India.

Debts, Public.

Fiscal policy--India.

Fiscal policy.

Physical Description:

1 online resource (28 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2010.

Language Note:

English

Summary:

This paper discusses possible medium-term public debt targets for India, based on evidence from the economic literature on prudent levels of public debt and the feasibility for the country to meet a particular target over the next 5-6 years. While recognizing the challenges in determining an appropriate debt target, cross-country analysis and simulations suggest that a debt ratio in the range of 60-65 percent of GDP by 2015/16 might be suitable for India. Such a debt ceiling, while still above the average debt level for emerging markets, is within the range of debt ratios that would provide room for countercyclical fiscal policy and contingent liabilities. It would also send a strong signal of the government's commitment to fiscal consolidation by making a clear break with the past.

Contents:

Contents; I. Introduction; II. What is an Appropriate Public Debt Ceiling Target?; A. Theoretical Considerations; B. Empirical Evidence; C. Country Experience; III. What is an Appropriate Debt Target/Ceiling for India?; A. Sustainability of Public Debt; Text Tables; 1. Examples of Debt Ceilings; 2. Selected Emerging Countries: Average Growth-Interest Differential; B. Thresholds of Debt Intolerance; 3. Benchmark Public Debt-to-GDP Ratio: Sensitivity to Primary Surplus and Interest- Growth Rate Differential; 4a. Country Ratings, Public Debt Ratios and Clubs

4b. Predicted Debt Thresholds for IndiaC. Public Debt Ratio of Emerging Markets; 5. General Government Debt Ratios Among Sample of Emerging Countries; IV. What is a Feasible Debt Target/Ceiling for India? Debt Simulation Results; A. Historical Perspective; B. Debt Simulations; V. Conclusion; 6. Path of India's General Government Debt: Scenarios; Figures; 1. Baseline Scenario: Public Debt Sustainability Bound Tests; 2. Combined Scenario: Public Debt Sustainability Bound Tests; References

Notes:

Description based upon print version of record.

Description based on publisher supplied metadata and other sources.

ISBN:

9786613877949

9781462365845

1462365841

9781452745008

1452745005

9781283565493

1283565498

9781451918564

1451918569

OCLC:

724561008