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Delhi, Punjab, Kerala, Puducherry spend more on day-to-day expenses
The Business Guardian
|December 22, 2024
Populist schemes such as free electricity, free transport, and monetary assistance programs are impacting the financial health of States and reducing their ability to invest in critical infrastructure, according to the Reserve Bank of India's (RBI) latest report.
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It said, "Several States have announced sops pertaining to farm loan waiver, free electricity to agriculture and households, free transport, allowances to unemployed youth and monetary assistance to women in their Budget for 2024-25."
The report highlighted that in the 2024-25 Budget, several States announced various populist measures while these measures aim to provide immediate relief to targeted groups, they significantly strain State finances, the RBI warned.
"Such spending could crowd out the resources available with them and hamper their capacity to build critical social and economic infrastructure," the report noted.
Esta historia es de la edición December 22, 2024 de The Business Guardian.
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