RBI flags rising subsidies by states as incipient stress

New Delhi [India], December 19 (ANI): The Reserve Bank of India (RBI) on Thursday termed increasing spending by states on subsidies as an "incipient stress" and called for rationalisation of such outgoes.

The central bank in a report 'State Finances: A Study of Budgets of 2024-25' said that the states need to contain and rationalise their subsidy outgoes so that such spending does not crowd out more productive expenditure