Mumbai, Oct. 27 -- Reserve Bank of India (RBI) Governor Sanjay Malhotra on Tuesday advised state governments to adopt prudent borrowing strategies and ensure quality spending, highlighting the importance of long-term fiscal health.
Addressing the 36th Conference of State Finance Secretaries, the governor also advised states to make effective use of the State Level Bankers' Committee (SLBC) forum.
The Conference was attended by the finance secretaries of 27 States and three Union Territories as well as senior officials from the
Union Ministry of Finance, Controller General of Accounts and the Comptroller and Auditor
General (CAG) of India, Reserve Bank said in a release.
Malhotra highlighted the importance of maintaining the quality of expenditure to ensure the long-term fiscal health of the states.
He also emphasised the need for states to adopt prudent borrowing strategies and efficient cash management practices. The Governor urged the states to onboard onto the Unified Lending Interface (ULI) and utilise Programmable
Central Bank Digital Currency (P-CBDC) for Direct Benefit Transfers (DBT).
The meeting reviewed, inter alia, market borrowings by the sates, short-term financial accommodation to the states from Reserve Bank, and adoption of Benchmark Issuance Strategy by the states.
During the Conference, the Governor also released a booklet titled 'Compendium on Cash and Debt Management for State Governments' which summarises relevant concepts, operational processes and good cash and debt management practices in a concise and accessible format.
Published by HT Digital Content Services with permission from Millennium Post.