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Ajit Ranade: Rising interest payments on government debt isn’t equally bad news for everyone

Rising global interest rates make government debt costly. Deficit financing is desirable only for assets with high social returns, like infrastructure or education. Yet, current fiscal pressures largely stem from wars, protectionism, and debt servicing. India's high interest payments burden its budget, causing higher taxes and reduced social spending, straining households. The author advocates for stricter borrowing scrutiny, prioritizing education and health investments to mitigate severe distributional consequences of sovereign debt.

LiveMint · Ajit Ranade · Yesterday at 7:00 AM

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