Las exenciones y los esquemas de bienestar afectan la gestión fiscal de los estados: RBI

MUMBAI: The Reserve Bank Of India ( RBI ) And The NK Singh-headed 15th Finance Commission Discussed Ways To Address Gaps In Fiscal Management Of State Governments At Role Of The Planning Commission Being Discarded. The Proposals Discussed Included The Creation Of State Finance Commissions, Ensuring The Continuity Of The Finance Commission And The Establishment Of Limits To The State Loans Of The Public Sector.

RBI Governor Shaktikanta Das Informed The Finance Commission That State Government Debt Is On The Rise, Despite Moderation In Interest Rates. This Was Partly Because Of Higher Liabilities Due To Some Welfare Schemes.

In The Meeting, The Central Bank Made A Detailed Presentation On State Government Finances For FY20. The Central Bank Pointed Out That While Many States Have Budgeted For A Lower Fiscal Deficit In 2019-20, Revised Estimates Have In The Past Deviated Significantly.

This Year, There Are Specific Factors That Drive Fiscal Deviations. These Include The Ujwal Discom Assurance Yojana (UDAY), Agricultural Loan Exemptions And Income Support Schemes In FY19. As A Result, The Outstanding Debt As A Percentage Of GDP Has Been Rising In The States.

In Terms Of UDAY Scheme Signed By State Governments In 2016, Their Electricity Distribution Companies (discoms) Were To Cut Distribution Losses And Raise Tariffs. In Return, The State Governments Took Over Their Debt Burden. In The Last Two Years, State Governments Have Also Been Trying To Alleviate Agri Distress By Paying Off Loans From Farmers To Banks. States Have Been Increasingly Meeting These Funding Gaps Through Market Borrowing. However, They Have Not Been Able To Get The Same Response As Central Government Because Of Issues Such As Liquidity And A Narrow Base Investor.

The RBI Suggested In The Meeting That State Governments Could Look At Ways To Improve Trading In Their Bonds In The Secondary Market By Reissuing Existing Bonds (to Create The Critical Mass Needed To Facilitate Trading). Also, They Could Sell Their Bonds To New Categories Of Investors.

The RBI Also Suggested Ways To Improve Cash-forecasting Capabilities. In The Two-day Meeting At The RBI, The Finance Commission Is Expected To Meet With Banks, Financial Institutions And Economists As Well.