Components of internal debt — UPSC Prelims PYQ 2001

Consider the following:

1. Market borrowing
2. Treasury bills
3. Special securities issued to RBI

Which of these is/are component(s) of internal debt?

1. I only
2. I and II
3. II only
4. I, II and III

Explanation

Option (d) is correct

• Internal debt refers to the borrowings raised by the Government within the country. It includes market borrowings through government securities, short-term borrowings in the form of Treasury Bills, and special securities issued to the Reserve Bank of India. Therefore, all three given components form part of the internal debt of the Government.

Answer: (d) I, II and III