$ Denominated External Debt & Debt's to GDP Ratio Overshooting the Roof

India’s external debt rose by almost 13 per cent to $390 billion at the end of March 2013, higher than $345.5 billion a year earlier. This  according to an official statement is mainly due to an increase in short-term trade credit and external commercial borrowings amid a high current account deficit.   

  

The International Debt Statistics 2013 of the World Bank, which contains data for 2011, shows India in fourth position in terms of absolute debt stock among the top 20 developing debtor countries. However, in terms of the ratio of external debt to Gross National Income, India's position was the third-lowest, though it added that the external debt has remained within manageable limits, as indicated by the external debt-GDP ratio of 21.2 per cent in the last year.

But the important point that now must be questioned; where the increased level of debt at present will stand at the end of this fiscal ? And where will be $ denominated debt's ratio will stand in the end, when the rupee is already depreciated by more then one fifth in the middle of this fiscal ?

Will not the ratio over shoot  hereafter remain manageable level of 21 %, when the GDP growth is fast declining,simultaneously the CAD, fiscal deficit, annual subsidy bills and inflation are fast touching the roof ? Will it be still manageable ? 

Do Indian Government have a clear visionary road map for the situation fast unfolding ? Will they issue a White Paper or Status Report on the currency related economic health of the country, that may be essential for the knowledge of the people as well for the restoration of the lost confidence of investors ? Don't you understand and accept that any Economy  needs a clear picture away from the haze or suspicion, for its time bound future planning and actions ?

Who Will Pay for Sonia Gandhi's Food Security Bill for Next Year ?

The government is very keen that the Food Security bill gets passed today to mark Rajiv Gandhi's birth anniversary.  Congress president and UPA chairperson, Sonia Gandhi, is expected to make a rare speech in Parliament as the government makes an all-out effort to push its flagship Food Security Bill on the 69th birth anniversary of former Prime Minister Rajiv Gandhi. 

The UPA Govt is hell bent on the bill for which fresh burden of more then one lakh crores rupees will be needed by the incoming government next year, while the present current account and fiscal deficit is going above six % of GDP.

On date, the credibility of India in world financial market including the currency market is highly negative, even as India may be endangered to be called bankrupt.

The currency is down in last one month by more than 20% and the Govt unmindful of the financial crisis running in Indian market , just fighting for its vote bank supporting gimmick of food security bill on Rajiv Gandhi Day.

Do the government have money or exhibit plan to meet the current account deficit of this year at least or will India be forced to sale the Gold Reserve of India with RBI in the world market to pay the debts of this year as it had done in 1991 ?

The fiscal deficit, that is difference between Govt expenses and revenue and other collection made for the financial year is already above the desired thresh hold limit and it is running above 6% of the GDP, the extra subsidy projection by this bill, which Mrs Sonia Gandhi is creating for the next year will be met how ? Who will pay for it ? 

If you have failed to manage present budgeted needs, what right you have to make plan for next year ? Just to cheat the innocent poor with a lollipop promise and to corner their votes, are not you  playing with the fire as regards to the health and strength of India's economy? Don't you want to burden this unplanned impossible load to the next government and that is to suffer for your default ?

The Congress has come to Parliament today even prepared to the extent  to suspend its own MPs from Andhra Pradesh, if they continue to protest against a separate Telangana state. in its gamble play of this bill.