Evaluating India's Debt Sustainability

XI Capital Markets Conference, 21-22 December 2012, Indian Institute of Capital Markets (UTIICM)

8 Pages Posted: 3 May 2013

Date Written: November 30, 2012

Abstract

The world is currently in the throes of a sovereign debt crisis, which in its enormity far surpasses the Latin American crisis, which occurred two decades ago. The developed economies in an attempt to stimulate the economy during the recent recession adopted extraordinary measures both from the monetary and fiscal front. While infusing of surplus liquidity in the system to unfreeze the illiquid credit markets fell in the Central Banks’ domain, the governments adopted the Keynesian method of fiscal expansion to boost demand. However, this has led to the ballooning of fiscal deficits worldwide with unsustainable debt levels, particularly amongst the developed countries. At this juncture it would also be relevant to assess India’s fiscal situation and determine whether our medium term fiscal goals are achievable.

Keywords: Debt sustainability, fiscal space

Suggested Citation

Sarkar, Arkodipta and Das, Kamalika and Pasricha, Kanika, Evaluating India's Debt Sustainability (November 30, 2012). XI Capital Markets Conference, 21-22 December 2012, Indian Institute of Capital Markets (UTIICM) . Available at SSRN: https://ssrn.com/abstract=2258309 or http://dx.doi.org/10.2139/ssrn.2258309

Arkodipta Sarkar (Contact Author)

ICICI Bank ( email )

Mumbai, Maharashtra 400051
India

Kamalika Das

ICICI Bank ( email )

2nd floor, West Wing, Bandra Kurla Complex
Mumbai, 400051
India

Kanika Pasricha

ICICI Bank ( email )

Madurai, Tamil Nadu
India

Register to save articles to
your library

Register

Paper statistics

Downloads
104
Abstract Views
712
rank
260,148
PlumX Metrics