Navigating Public Debt in Post-Covid India: Fiscal Prudence and Policy Responses (2014-2024)

This study examines public debt in post-COVID India from 2014 to 2024, focusing on fiscal prudence and policy responses. The data reveals a consistent rise in public debt, internal debt, and revenue expenditure, with the debt-to-GDP ratio increasing from 67.7% in 2014 to 83.06% in 2024. The Gross Fiscal Deficit has also widened, indicating a growing gap between revenue and expenditure. The unit root test suggests mixed stationarity results, implying that some economic indicators follow a stable trend while others exhibit randomness. The Augmented Dickey-Fuller test confirms that public debt is not stationary, meaning it fluctuates over time due to external factors. The correlation matrix indicates a strong relationship between public debt and revenue expenditure, developmental expenditure, and gross fiscal deficit. These findings highlight the urgent need for policy measures to manage fiscal stability.