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Fact Check: Did India's Debt Increase To US$ 486 Billion By 2018?
Writer: Aditi Chattopadhyay
Aditi, part of the fact checking team of The Logical Indian likes to read, write, cook and laugh, in short live life as it is supposed to be. What makes her fascinated is to discover the truth behind a story and more often than not, it is either fact or myth at the end.
India, 12 July 2020 7:30 AM GMT
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As the founding editor, Bharat had been heading the newsroom during the formation years of the organization and worked towards editorial policies, conceptualizing and designing campaign strategies and collaborations. He believes that through the use of digital media, one could engage the millennial's in rational conversations about pertinent social issues, provoking them to think and bring a behavioral change accordingly.
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The Logical Indian Fact Check team investigates the claim that India’s debt increased from US$ 296 billion to US$ 486 billion between 2014-2018.
A graphic is currently doing the rounds which claims that India's debt at the end of 2014 was US$ 296 billion, however, at the end of 2018, it increased to US$ 486 billion.
The graphic attributes the increase in debt to PM Modi.
Claim:
India's debt increased from US$ 296 billion to US$ 486 billion between 2014-2018.
Fact Check:
The claim is misleading. The figure cited of debt and of the increase is not correct.
According to the Ministry of Finance website, India's total outstanding debt by the end of 31 March 2014 was at US$ 929.6 billion (RE as per the conversion rate of 28 March 2014).
While by the end of March 2018. India's total outstanding debt stood at US$ 1265.7 billion (RE as per the conversion rate of 28 March 2018).
The RBI website says that on March 28 2014, one US$ was valued at 60.0998 rupees.
Four years later, on 28 March 2018, it increased to 65.0441 rupees.
Outstanding Debt:
When the government's revenue from taxes and other sources fall short of its spending requirements, it tends to resort to borrowings from markets and external sources.
The total liabilities of the central government-contracted against the Consolidated Fund of India is Public debt. It is classified into internal & external debt. Internal debt is further divided into marketable and non-marketable securities.
Marketable government securities include G-secs and T-Bills issued through auction. Non-marketable securities include intermediate treasury bills issued to state government's, special securities issued to national Small Savings Fund among others.
Debt borrowings are not equal every year. They depend on factors like loan repayment, changing economic climate etc..
Therefore the claim made in the viral graphic does not align with actual data. The figure cited in viral graphics are false. However, the debt on India increased by US$ 336.1 between the said period.
This claim has earlier been fact-checked by Factly.
If you have any news that you believe needs to be fact-checked, please email us at factcheck@thelogicalindian.com or WhatsApp at 6364000343
Also Read: Fact Check: Is Kapil Sibal Moving Supreme Court Against Tik Tok Ban?
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