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Over the last two decades, India has been running deficits in both revenue account and overall budget adding to the public debt each year. Fiscal profligacy of many state governments has added to the woes of the center by further raising the combined debt burden. External debt becomes another worrisome aspect especially when crossborder flows become volatile during crises and rating agencies are waiting in the wings with a downgrade threat. As soon as the debt crosses a certain threshold level,doi:10.4172/2168-9458.1000146 fatcat:u7twy2zffvgk3jkagjdlwvzo3i