How much public debt is threshold in India?
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Date
2024-02
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Springer
Abstract
The study examines the threshold level of India's public debt from 1970 to 2019. The ARDL method finds that a country’s public debt is driven mainly by its gross fiscal deficit, real interest rate, and economic growth. In addition, the ratio of public debt to GDP has been used by the genetic algorithm method. The findings show that the ratio of public debt to GDP must be at most 61–64% in India. According to the results of this study, economic development is boosted when the national debt falls below a threshold level. Therefore, the current idea of public debt is supported by modern theory on public debt.
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Keywords
Economics, GDP, Genetic Algorithms