State Spending
States need to focus on improving quality of expenditure, says RBI Malhotra
This story was originally published at 21:23 IST on 18 September 2025
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MUMBAI – Reserve Bank of India Governor Sanjay Malhotra Thursday said state governments need to focus on improving quality of expenditure and ensure prudence in off-budget borrowings. Speaking at the inauguration of the 35th conference of state finance secretaries, the governor emphasised on the importance of fiscal discipline for promoting economic growth and prosperity, according to a press release by the central bank.
Malhotra also underscored the importance of active coordination between the states and the central bank for effective implementation of various initiatives being undertaken in the areas of currency management, financial inclusion, unified lending interface, etc. The meeting reviewed cash management and market borrowings by the states and issues relating to fiscal consolidation.
The conference was attended by the finance secretaries of 28 states and two union territories, secretary of the Department of Expenditure, other officials from the Ministry of Finance, the Controller General of Accounts, and the Comptroller and Auditor General of India. End
Reported by Srijita Bose
Edited by Ashish Shirke
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