Instead of increasing foreign debt, the government pays a little more interest to the people

- Antenna-Vivek Mehta

- Giving high interest rates to the people of the country will keep the country's money flowing in the domestic market and the economy will continue to revolve:

The government is raising debt to boost the economy. A chartered accountant says that he has to pay Rs 4 lakh to Rs 5 lakh crore a year in interest on debts raised for 70 years. As on March 31, 2021, India's internal debt stood at Rs. 1,17,39,130 ​​crore. As on March 31, 2022, India's internal debt stood at Rs. 1,31,59,050 crore. As on March 31, 2021, India's foreign debt stood at Rs. 3,82,829 crore, while India's foreign debt will reach Rs. 4,27,925 crore by March 31, 2022. This debt is said to have increased during the Congress period.

On the one hand, there is no surpassing the cost of government programs and ministers. The Comptroller and Auditor General, who audits every account of the government, should prepare a separate chapter on the non-productive expenditure of the government. The auditor should also report on the non-productive expenditure of the government by analyzing the government expenditure along with the performance of the economy.

The auditor paid Rs. More than Rs 11,000 crore has been spent. Although that is not enough. It has become imperative to control the expenditure on government funds. All costs are expected to be for productive and infrastructure development and job creation.

Now let's talk about the internal debt of the country. Its interest rates are going down. The government has been slashing interest rates on government or post office investment schemes. To that end, the government now argues that the tax deductible under Section 80C is giving jobs and income-generators a chance to plan for future savings. Most investors fail to take this opportunity fast. Then it is not fair to shout that there is no social security facility.

Now back to the government's external debt. The government borrows from abroad to build infrastructure. It claims to be cheaper than internal debt as it borrows at one and three per cent interest. In fact, interest rates may be lower, but changes in foreign exchange rates have forced the government to repay twice or three times the amount borrowed. This money is drawn to another country in the form of exchange.

On the other hand, if the government savings scheme or the post office savings scheme has a slightly higher interest rate, the investors of the country will invest their savings in it as much as possible. It will keep their money safe in their minds. Also, the interest income they get will be used only in India. That will keep the economy afloat. Like foreign debt, India's money will stop being drawn abroad. In this sense, internal debt can be beneficial to the economy and the country's economic activity. Debt from abroad will be a huge burden on the economy. Under these circumstances, if people are attracted to invest in government schemes, the way will be open for the government to boost the economy with the burden of interest on its head.