Indian budget 2020-21- More need and scope for raising resources through public debt

India is not a heavily indebted country. Gross government debt of some of the developed countries as percentage of their GDP in the year 2017 is given below.

Japan                          223.8

I

Italy                            131.2
Singapore                  114.6
France                          98.5
U.K                                87.0
U.S.A                             82.3
Germany                      64.1
India                             50.1 This has since gone up

It appears that the developed countries have developed by mobilising the funds with the private sector for developmental activities.India could also develop fast by using the funds available with public by incurring debt and also by encouraging private sector to invest in developmental activities.The budget for 2020-21 shows total expenditure of Rs.30 lakh crores against revised budget of Rs.27 lakh crores which shows an increase of only about 10% . If we take into account the likely inflation of about the same percentage, there is in real terms no increase in expenditure. The welcome thing is that private sector is being  involved in developmental activities.

There is scope for increasing borrowings in 2020-21 from around Rs. 8 lakh crores to at least Rs.20 lakh crores