Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
Fiscal Deficit and Public Debt Sustainability: An Empirical Analysis of South Asian Economies
Dr. N. Nithya
13 July 2025 · Vol. 1, Issue 1, pp. 26-33
DOI: 10.65150/EP-jefrr/V1E1/2025-A004 (registration with Crossref in progress)
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What is this article about?
Fiscal deficits and public debt continue to be central issues in the macroeconomic discourse of South Asian economies, where governments face the dual challenge of financing economic development and maintaining fiscal discipline. As the pressure to invest in infrastructure, healthcare, and social welfare increases, several countries in the region have resorted to high levels of deficit financing.
Article at a glance
- Published
- 13 July 2025
- Volume / issue / pages
- Vol. 1, Issue 1, pp. 26-33
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
Fiscal deficits and public debt continue to be central issues in the macroeconomic discourse of South Asian economies, where governments face the dual challenge of financing economic development and maintaining fiscal discipline. As the pressure to invest in infrastructure, healthcare, and social welfare increases, several countries in the region have resorted to high levels of deficit financing. This, in turn, has led to the accumulation of substantial public debt, raising questions about long-term sustainability and macroeconomic stability. This study offers a comprehensive empirical analysis of the relationship between fiscal deficits and public debt sustainability in five South Asian countries: India, Pakistan, Bangladesh, Sri Lanka, and Nepal. Using time-series data spanning from 2000 to 2023, it evaluates key indicators such as the debt-to-GDP ratio, primary balances, and interest payment burdens. The study employs both quantitative models and qualitative expert insights to assess fiscal health. It finds that while some countries have demonstrated a strong fiscal position and prudent borrowing strategies, others are at a critical juncture, teetering on the edge of sovereign default Recommendations focus on the importance of fiscal consolidation, efficient public expenditure, revenue mobilization, and institutional reforms to ensure that public borrowing contributes to economic growth without endangering financial stability.
Keywords: Fiscal Deficit, Public Debt, Debt Sustainability, South Asia, Fiscal Responsibility, Primary Balance, Sovereign Risk, Public Expenditure, Economic Policy, Debt-to-GDP Ratio
Cite this article
Dr. N. Nithya (2025). Fiscal Deficit and Public Debt Sustainability: An Empirical Analysis of South Asian Economies. Journal of Economic, Finance Research and Review, 1(1), 26-33. https://www.ep-journals.org/articles/fiscal-deficit-and-public-debt-sustainability-an-empirical-analysis-of-90e51ac8
@article{Dr2025,
title = {Fiscal Deficit and Public Debt Sustainability: An Empirical Analysis of South Asian Economies},
author = {Dr. N. Nithya},
journal = {Journal of Economic, Finance Research and Review},
year = {2025},
volume = {1},
number = {1},
pages = {26-33},
url = {https://www.ep-journals.org/articles/fiscal-deficit-and-public-debt-sustainability-an-empirical-analysis-of-90e51ac8}
}Questions about this article
Who wrote this article?
Dr. N. Nithya.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 1, Issue 1, pages 26-33, published by EP Journals Group on 13 July 2025.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V1E1/2025-A004. Registration with Crossref is in progress.
How do I cite this article?
APA: Dr. N. Nithya (2025). Fiscal Deficit and Public Debt Sustainability: An Empirical Analysis of South Asian Economies. Journal of Economic, Finance Research and Review, 1(1), 26-33. https://www.ep-journals.org/articles/fiscal-deficit-and-public-debt-sustainability-an-empirical-analysis-of-90e51ac8
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