The Reserve Bank of India expressed concerns over states’ rising spending on subsidies like farm loan waivers and freebies, impacting funds for infrastructure and development. State subsidies have surged, with revenue expenditure exceeding capital outlay in several states. While overall fiscal consolidation efforts are positive, RBI emphasizes the need for prioritizing capital expenditure for long-term growth.
Flagging farm loan waivers, cash transfers, other sops, RBI says rationalise subsidies
