RBI Governor Urges States to Find Effective Ways to Solve Debt Problems

Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday called on state governments to find effective ways to address debt and cash management issues.

The governor was here addressing the 32nd Conference of Secretaries of State for Finance (SFS).

In his remarks, Das underscored the importance of the SFS conference as an effective platform to deliberate and find effective ways to address various issues related to state debt and cash management, RBI said in a statement.

He underscored the need for States to adopt a prudent borrowing strategy and effective cash management practices, given the changing macroeconomic scenarios.

Additionally, Das highlighted the need for states to focus on improving the quality of spending, better management and monitoring of contingent liabilities, and improving governance in cooperative banks.

During the meeting, market borrowing by the States and the administration of the Consolidated Sinking Fund/Guarantee Reimbursement Fund were reviewed.

Other issues discussed at the meeting included the quality of state spending, the role of states in controlling inflation, state debt management strategies, the need for capacity building programs for the management of debt and cash, and various operational matters.

The conference brought together the officials of the Union Ministry of Finance, the Comptroller General, Comptroller and Auditor General of India and the Finance Secretaries of 24 states and one union territory.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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