RBI advises states to be more prudent in managing finances

The Reserve Bank of India commends states for fiscal deficit reduction but urges adherence to the ‘golden rule’ of financing current expenditure with current revenue. The RBI also criticizes excessive subsidies and cash transfers, advocating for rationalization and outcome-based budgeting for better resource allocation and developmental impact. The Reserve Bank of India commends states for fiscal deficit reduction but urges adherence to the ‘golden rule’ of financing current expenditure with current revenue. The RBI also criticizes excessive subsidies and cash transfers, advocating for rationalization and outcome-based budgeting for better resource allocation and developmental impact.  Economic Times