Points to Remember:
- The question requires a factual answer.
- The source of information is specifically stated as the Chhattisgarh Budget, 2020-21.
- The answer should be a precise percentage figure.
Introduction:
Public debt represents the total amount of money a state government owes to various creditors, including domestic and international lenders. Expressing this debt as a percentage of the Gross State Domestic Product (GSDP) provides a crucial indicator of a state’s fiscal health. A high debt-to-GSDP ratio can signal potential financial strain, while a lower ratio suggests greater fiscal stability. The Chhattisgarh Budget, 2020-21, provides the official data for calculating this ratio for the state during that fiscal year. This answer will focus on extracting and presenting that specific data.
Body:
Finding the Percentage of Public Debt in GSDP:
Unfortunately, I do not have access to real-time information, including specific government budget documents like the Chhattisgarh Budget 2020-21. Therefore, I cannot provide the exact percentage of public debt to GSDP for Chhattisgarh from that specific budget. To obtain this information, one would need to:
Access the Chhattisgarh Budget 2020-21 document: This can typically be found on the official website of the Chhattisgarh government’s finance department or a similar official source.
Locate the relevant figures: The budget document will contain details of the state’s total public debt and the GSDP for the 2020-21 fiscal year. These figures might be presented in separate sections of the document.
Calculate the percentage: Once both figures are identified, the percentage can be calculated using the following formula:
(Public Debt / GSDP) * 100 = Percentage of Public Debt to GSDP
Factors Affecting Public Debt:
While I cannot provide the specific percentage for Chhattisgarh, it’s important to note that several factors influence a state’s public debt-to-GSDP ratio. These include:
- Government spending: Higher government expenditure on infrastructure, social welfare programs, or salaries can increase public debt.
- Revenue generation: The state’s ability to generate revenue through taxes and other sources impacts its capacity to manage debt.
- Economic growth: A strong GSDP growth rate can help reduce the debt-to-GSDP ratio, even if the debt itself increases.
- Borrowing costs: Higher interest rates on loans increase the cost of servicing the debt.
- Fiscal discipline: Effective fiscal management and prudent borrowing practices are crucial for maintaining a healthy debt-to-GSDP ratio.
Conclusion:
To determine the precise percentage of public debt in the GSDP of Chhattisgarh as per the 2020-21 budget, one must consult the official budget document directly. The methodology for calculating this percentage involves dividing the total public debt by the GSDP and multiplying by 100. A healthy debt-to-GSDP ratio is crucial for a state’s fiscal sustainability. Understanding the factors influencing this ratio allows for better policymaking and financial planning, promoting responsible governance and long-term economic well-being. Further research into the Chhattisgarh Budget 2020-21 is recommended to obtain the specific figure.
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