The Burden of Government Debt in the Indian States: Implications for the MDG Poverty Target

Abstract

The purpose of this chapter is to explore what impact, if any, government debts have on achieving the poverty target of the Millennium Development Goals (MDGs) for the Indian states. The MDGs specify the target levels to be achieved for a set of specific indicators by 2015. By addressing a broad range of indicators such as income poverty, health, literacy, gender and environment, with strong interlinkages between them, the UN General Assembly which ratified the MDGs hoped to bring about a reduction in the overall level of deprivation in the world (UN 2000). The goals are ambitious, and include the halving of poverty, illiteracy and hunger by 2015. This also means however that to fulfil the goals, national governments, especially in the developing world, have to undertake major investments in the social sector. But how much they will really be able to do so will depend on the conditions of their finances, which indirectly determines therefore the success of the MDGs.