RBI Governor Raghuram Rajan on Monday said Government debt is not yet a problem for India even as Standard & Poor's stated that high government debt is putting the sovereign rating under pressure.
"We are one of the few countries that do not have a huge debt problem as yet," he said, addressing the students of Guru Nanak College in central Mumbai this morning.
He said that many European Union countries indulge in excess borrowing.
Earlier during the day, in a statement issued in the wake of the Budget, global ratings firm S&P said the high government debt is putting the sovereign rating under pressure.
"The debt burden and large budgetary subsidies could constrain the speed of improvements in credit metrics.
"The Government debt burden and subsidy continue to constrain fiscal flexibility," its credit analyst KimEng Tan said.
Finance Minister Arun Jaitley in the Budget last week raised the fiscal deficit target to 3.9 percent for FY16, against 3.6 percent given earlier in the fiscal consolidation roadmap which had also promised to bring it down to 3 percent by FY17.