Ensure fiscal autonomy of States while urging financial discipline
States have more autonomy than ever before, must stick to fiscal rules for their own good
March 2, 2017|The Economic Times|Full Article
Many Indian states will grapple with public finances as they present their annual budgets this spring. Top on the agenda of elected governments will be to spend money to fulfil poll promises.
The list — free electricity for farmers, loan waivers, mobile phones to ration cardholders, distribution of laptops, etc — varies from state to state. While doles like the Mahatma Gandhi National Rural Employment Guarantee Act are needed, others can hurt state finances and the country’s macroeconomic health.