The Reserve Bank of India (RBI) has released a report on state finances and also on the working of the central government. The report points out that the liabilities of state governments are declining, but it still remains above pre-pandemic levels. The RBI also had a word of caution for the union government. The central bank said that too many centrally sponsored schemes reduce the flexibility of state governments to spend and it dilutes the spirit of cooperative fiscal federalism.
The Reserve Bank of India (RBI) has released a report on state finances and also on the working of the central government. The report points out that the liabilities of state governments are declining, but it still remains above pre-pandemic levels. The RBI also had a word of caution for the union government. The central bank said that too many centrally sponsored schemes reduce the flexibility of state governments to spend and it dilutes the spirit of cooperative fiscal federalism. The Reserve Bank of India (RBI) has released a report on state finances and also on the working of the central government. The report points out that the liabilities of state governments are declining, but it still remains above pre-pandemic levels. The RBI also had a word of caution for the union government. The central bank said that too many centrally sponsored schemes reduce the flexibility of state governments to spend and it dilutes the spirit of cooperative fiscal federalism.