Mumbai: The 15th Finance Commission has expressed concerns on rising consolidated debt, especially due to higher borrowings by public sector companies. After a meeting with bankers and economists in Mumbai, the commission said it will cross check data from the Comptroller and Auditor General (CAG), Reserve Bank of India (RBI) and the finance ministry, chairman NK Singh said.
The matter of high consolidated government debt came up for discussions before the commission and is being watched, Singh said.
“A lot of discussions happened on public sector debt. There are concerns and the commission is looking into the matter but it is difficult to ascertain exactly how much it is. The only sign from the market is when the coupon rates increase without there being any stress in liquidity and which may lead to crowding out (of private companies)…that will also later surface in the bank fixed deposit rates. But that is not an immediate issue which we foresee,” said a commission official.
On doubts being raised on the economic data available, Singh said: “Some of the members are staying back and looking at the data from CAG, RBI and finance ministry. We will try to reconcile the data we get and try to find reliable data which we can use…this is a normal practice…we are looking at various sets of data.”