On the debt situation, the minister said the internal debt burden of the Centre has gone up to Rs 12,70,272 crore in 2004-05, which is almost 10% rise from Rs 11,41,706 crore in 2003-04. However, the interest outgo has come down to Rs 1,00,399 crore in 2004-05 from Rs 1,03,123 crore in 2003-04. India’s external debt also rose to $123.45 billion till 2004-05 from $111.71 billion in 2003-04, but the interest outgo came down to $3.75 billion from $4.4 billion.
Mr Palanimanickam said the government has been following a policy of fiscal prudence aimed at reducing deficit and thereby containing borrowing. Similarly, prudent external debt management helped in maintaining a comfortable external debt position, he said.
