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The Economic Times

Economy / The Economic Times

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Economic Survey: Health warning for states' fiscal metrics

State government finances are facing challenges with rising deficits and increased borrowing. While capital expenditure is being supported by central government loans, a rise in unconditional cash transfers is impacting fiscal space. This trend could lead to higher sovereign borrowing costs. Prudent fiscal management by states is not being rewarded with lower borrowing rates.

30 Jan 2026 12:53 am