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As Q2 growth reveals a prolonged period of slow down, we are getting closer and closer to the point where i>g. This means that hitting the 60% debt/GDP target by 2023 (acc to FRBM Report) will only be possible by running a surplus
RBI Database shows that debt/GDP has hovered around the 69 percent mark for the last three years. A strict perusal of the debt target is nearly impossible in the given time frame.
A simulation based on the formula for debt movement shows that the government will have to run surpluses (d) anywhere between 2-3% of GDP to hit 60% in the next 4 years. This is practically impossible.
Like its failure to hit the 3% deficit target (see fig),it is highly likely that the debt/GDP target is also going to be missed by a mile. Cutting spending to pursue an arbitrary target in the midst of rising unemployment will only worsen the situation
