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MK Global report, "States ignore fiscal balance during elections"
After Corona, the efforts to establish fiscal balance in the states as well as the central government were going well. But during the current financial year, the Center is moving in the right direction but the situation of many states does not look good. A big reason behind this is populist promises and their implementation. In the last two years, elections have been held in ten states of the country.
After Corona, the efforts to establish fiscal balance in the states as well as the central government were going well. In the current fiscal year, however, the Centre is making progress, but many states' circumstances are unfavorable. A big reason behind this is populist promises and their implementation.
This has been told in a report released on Tuesday by MK Global, a leading economic research agency of the country. In the last two years, elections have been held in ten states of the country, and in all these states, very attractive populist promises have been made, the implementation of which will put a burden on the financial health of these states.
Also, there are many states which are presenting very optimistic estimates about their revenue collection. This will also backfire on them. MK Global Chief Economist Madhavi Arora says that the tradition of distributing free rebates in the elections held in Indian states is very old.
