DEA Secretary for reducing public debt over 4-5 yrs

New Delhi: The Indian economy has a large overhang of public debt and there is a need to focus on reducing this in the next 4-5 years, Economic Affairs Secretary Subhash Chandra Garg said Saturday. Pointing out that fiscal deficit is moving towards the ideal level of 3 per cent of GDP and inflation is moderate, Garg also said India's macroeconomic parameters are among the best globally. 

"Whether you look at fiscal deficit, or you look at the inflation management or reserves. Fiscal deficit we are very close to now coming to 3 per cent level considered ideal. "We still have an overhang of a very large public debt..maybe in next 4-5 years that is the area where we will need to focus," Garg said at the FICCI Annual General Meeting here. Rating agencies have raised concerns over the level of public debt and refrained from upgrading the sovereign rating of the country.