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Did You Know India Pays Over ₹12 Lakh Crore in Interest on Loans?

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Outstanding Loan on Government: Debt Levels, Composition, Repayment & Interest — Latest Lok Sabha Data

The Ministry of Finance, in a written reply to the Lok Sabha, shared the Union Government’s year-wise fiscal deficit (amount of loan/debt during the year), the outstanding debt stock, and the trajectory of repayments and interest payments. The government noted that after the pandemic peak, Central Government debt has consolidated from 61.4% of GDP in 2020-21 to 56.1% of GDP in BE 2025-26, with a stated aim to bring the debt-to-GDP ratio to about 50±1% by March 31, 2031.

Table 1: Union Government Loan/Debt During the Year & Outstanding Debt
Financial Year Amount of loan/debt during the year (Fiscal Deficit) (₹ lakh crore) Outstanding debt as on 31 March of FY (₹ lakh crore) Outstanding debt % of GDP
2015-16 5.33 70.98 51.5%
2016-17 5.36 74.94 48.7%
2017-18 5.91 82.87 48.5%
2018-19 6.49 93.26 49.3%
2019-20 9.34 105.07 52.3%
2020-21 18.18 121.86 61.4%
2021-22 15.85 138.66 58.8%
2022-23 17.38 156.13 58.1%
2023-24 16.55 171.70 57.0%
2024-25 (PA) 15.77 185.94 56.0%
2025-26 (BE) 15.69 200.16 56.1%

PA: Provisional Actuals; BE: Budget Estimate.

For FY 2024-25 (Provisional), the outstanding loan/debt is estimated at ₹185.94 lakh crore. The composition shows a predominance of internal debt, alongside external debt (converted at the exchange rate on March 31, 2025) and other public account liabilities.

Outstanding Loan/Debt at End-FY 2024-25 (Provisional)
Component Amount (₹ lakh crore)
Internal Debt 157.11
External Debt 8.74
Other Liabilities (Public Account Liabilities) 20.09
Total 185.94

External Debt valued at the exchange rate as on March 31, 2025.

The reply also details the Centre’s repayment of loans/debt and the interest payments over the last decade and the current year estimates. Repayment covers market and external loans; interest includes servicing of past contracted debt as well.

Table 2: Repayment of Loan/Debt and Interest Payments
Financial Year Repayment of loan/debt (₹ lakh crore) Interest on outstanding loan/debt (₹ lakh crore)
2015-16 1.67 4.42
2016-17 2.01 4.81
2017-18 1.64 5.29
2018-19 1.79 5.83
2019-20 2.70 6.12
2020-21 2.62 6.80
2021-22 3.00 8.05
2022-23 3.53 9.29
2023-24 4.88 10.64
2024-25 (PA) 4.16 11.16
2025-26 (BE) 4.61 12.76

PA: Provisional Actuals; BE: Budget Estimate. *Repayment includes market & external loans. **Interest is on outstanding debt contracted in the past as well.

Source: Lok Sabha Starred Question No. 354: “Outstanding Loan on Government,” answered by the Finance Minister on August 18, 2025.

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