Context:
The latest report by the Reserve Bank of India on the finances of state governments gives quite a few signals about having gone in an impressive manner at the aggregate level.
Context:
- Debt stock also declined but remains higher than the recommended throwback mark of 20% as per the Fiscal Responsibility and Budget Management Review Committee in 2017.
- The Fiscal Responsibility and Budget Management (FRBM) Review Committee was a committee formed in 2016 to review the Fiscal Responsibility and Budget Management (FRBM) Act.
- States managed gross fiscal deficit at 2.9% in 2023-24, less than the stipulated limit of 3%.
- Access to expenditure improvement increases because of capital spending, which accounts for 2.6% of GDP in 2023-24 versus 2.2% in 2022-23.
