Schemes like PM Kisan, NYAY should better be left to states, says Y V Reddy

Fiscal risk is more if PM Kisan and NYAY schemes are at the Centre, because it does not have hard budget constraints

Y V Reddy, former RBI governor and chairman of the 14th finance commission, tells Ishan Bakshi & Indivjal Dhasmana that states have been asked to do more on fiscal consolidation but the problem lies with the Centre. Reddy was in Delhi to launch his book Indian Fiscal Federalism that he co-authored with G R Reddy, advisor (finance) to the Telangana government. Edited excerpts:

The N K Singh panel talked about FRBM Act amendments. You also talked about public debt in your book. It seems if you are to reduce debt-GDP ratio, the burden falls squarely on the Centre. That would