Indian states need more financial support from Modi government, says an S&P report
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Last Updated: Jun 26, 2021, 01:01 PM IST
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Synopsis
The Covid-19 pandemic could increase budget deficits and indebtedness of state governments as spending needs to exceed revenue collected, S&P Global analysts YeeFarn Phua and Ruchika Malhotra said in a report.
AP
Indian states’ weaknesses outweigh their strengths as they battle the pandemic and they need financial support from the Centre, which is already dealing with drastically reduced revenue, according to S&P Global Ratings.
The Covid-19 pandemic could increase budget deficits and indebtedness of state governments as spending needs to exceed revenue collected, S&P Global analysts YeeFarn Phua and Ruchika Malhotra said in a report. The federal government and the Reserve Bank of India will remain key pillars for states’ fiscal framework and performance, they said.
Indian states’ weaknesses outweigh their strengths as they battle the Coronavirus (Covid-19) pandemic and they need financial support from the federal government, which is already dealing with drastically reduced revenue, according to S&P Global Ratings. The Covid-19 pandemic could increase budget deficits and indebtedness of state governments as spending needs to exceed revenue collected, S&P Global analysts YeeFarn Phua and Ruchika Malhotra said in a report. The federal government and the Reserve Bank of India will remain key pillars for states’ fiscal framework and performance, they said.
Strengths India’s well-established federation, with state governments having a strong voice in intergovernmental affairs
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