Centre's public debt triples to Rs 201 lakh crore in 11 years; nearly half of fresh borrowing spent on capital projects

New Delhi: India's total public debt has more than tripled over the past 11 years, rising from Rs 64.11 lakh crore at the end of 2014-15 to Rs 201.17 lakh crore at the close of 2025-26 (provisional), the government informed Parliament on Monday.

Replying to an unstarred question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the Centre's outstanding public debt increased by Rs 137.06 lakh crore during the period. Despite the sharp rise in absolute terms, the government said the debt grew at a Compound Annual Growth Rate (CAGR) of 10.95 percent.

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Public debt rises by over Rs 137 lakh crore

According to the minister, the Centre's outstanding public debt stood at Rs 64.11 lakh crore at the end of 2014-15. By the end of 2025-26, the figure had climbed to Rs 201.17 lakh crore, reflecting the government's increased borrowing over the years to finance expenditure and economic growth initiatives.

Public debt refers to the total outstanding liabilities of the Central Government, including market borrowings through government securities and external loans.

Fiscal deficit generated fresh borrowing of nearly Rs 126 lakh crore

Chaudhary said the net debt raised by the government during the last ten financial years—which is equivalent to the cumulative fiscal deficit—amounted to Rs 125.99 lakh crore.

He explained that net debt represents the actual borrowing after adjusting for repayments made during the year. In other words, it is calculated as gross borrowings minus loan repayments, and corresponds to the fiscal deficit for a financial year.

Nearly half of borrowing financed capital expenditure

Defending the government's borrowing strategy, the minister said a significant portion of the borrowed funds was channelled towards creating productive assets.

Of the Rs 125.99 lakh crore raised through fiscal deficits over the last decade, Rs 60.21 lakh crore, or around 48 percent, was utilised for capital expenditure.

Capital expenditure includes investments in highways, railways, ports, airports, defence infrastructure, irrigation projects, power transmission, digital infrastructure and other long-term assets that are expected to generate economic returns and support future growth.

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The government has consistently maintained that borrowing for capital creation is fiscally prudent because such investments enhance productivity and strengthen the economy's long-term growth potential.

Government repaid nearly Rs 31 lakh crore in loans

The Finance Ministry also highlighted that the government continued to service its debt obligations while undertaking fresh borrowings.

According to Chaudhary, the Centre repaid Rs 30.94 lakh crore in loans over the last ten financial years. These repayments included redemption of dated government securities as well as repayment of external loans.

Borrowing remains central to fiscal strategy

The figures presented in Parliament underscore the scale of the government's borrowing programme over the past decade, driven by higher public spending, infrastructure investments, welfare programmes and economic support measures, particularly during and after the COVID-19 pandemic.

While the Centre's debt burden has risen substantially in absolute terms, the government has maintained that a significant share of the borrowings has been directed towards capital expenditure rather than routine revenue spending, with the objective of supporting long-term economic growth and improving public infrastructure.

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