FM Nirmala Sitharaman Highlights Fiscal Responsibility

Finance Minister Nirmala Sitharaman emphasized the critical need for fiscal responsibility, stating that politics should not interfere with public finance due to its long-term impacts on both the Centre and states. She highlighted the balance between raising money and managing debt as essential for sustainable development.

The Temptation of Borrowing

At the launch of the States Economic Forum, Sitharaman pointed out the global temptation to borrow for growth, warning of the generational struggle to reduce debt levels. She cited examples of countries burdened by excessive borrowing, stressing the importance of mindful fiscal policies.

GST Council's Collaborative Approach

The minister praised the GST Council's collaborative efforts, where state finance ministers across party lines focus on revenue generation without overburdening the public. This approach, she noted, is crucial for maintaining fiscal health.

Rising Debt Levels Across States

NCAER director general Poonam Gupta revealed that debt levels have risen in all but four of the 28 states between 2013 and 2023, underscoring the challenges of fiscal management at the state level.

Stay informed with the latest business news, updates on bank holidays and public holidays.