Outstanding Liabilities of the Central Government refer to the total cumulative financial obligations the government has incurred and not yet repaid. These liabilities primarily arise from borrowings undertaken to finance fiscal deficits, development projects, and public expenditures. They encompass three major components: internal debt, which includes market loans, treasury bills, and government bonds raised within the country; external debt, comprising borrowings from foreign governments, multilateral institutions, and other international financial agencies typically denominated in foreign currencies; and public account liabilities, which involve non-debt obligations such as provident funds, small savings schemes, and other trust funds held by the government.

This indicator is a vital measure of a nation’s fiscal discipline and long-term economic sustainability. High outstanding liabilities may increase the government’s interest burden, crowding out resources meant for social and developmental spending. However, when managed prudently, debt can finance productive investments that stimulate growth and improve infrastructure. The government employs fiscal policies and debt management strategies to monitor and maintain a sustainable debt trajectory. Institutions like the Reserve Bank of India (RBI) and the Ministry of Finance publish regular updates on these liabilities, providing transparency and enabling informed decision-making. Sustainable liability levels are essential for maintaining macroeconomic stability, investor confidence, and the country’s financial credibility.