Annual Report on Currency and Finance 2022

Current Context: A research team at RBI has published the Annual Report on Currency and Finance and has observed the following.

• The debt to GDP ratio has risen to 88%, this fiscal. It should be brought down to 66 % in the next 5 years.
• The Debt to GDP ratio does not necessarily mean that the health of an economy is poor. Most of the developed economies have a debt to GDP above 100 percent.
• The Report also recommends having a high risk in terms of capital, called Capital Adequacy Ratio (CAR). This indicates the buffer to be maintained by the bank against lent capital.

Question:

Q.1 What is India's current Debt to GDP ratio as per the RBI?
a. 66%
b. 88%
c. 60%
d. 45%