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Finance Commission warns against fiscal slippage amid farm loan waiver push

Singh expressed apprehension that some states are not according priority to fiscal discipline, which was not the case earlier.

Press Trust of India  |  New Delhi 

Illustration by Ajay Mohanty
Illustration by Ajay Mohanty

N K Singh Saturday sounded a note of caution against fiscal slippage, saying it would adversely impact the country's macroeconomic stability as well as investment climate.

The remarks come in the backdrop of several states, including and Rajasthan, which witnessed a change of government, announcing farm loan waivers.

Singh expressed apprehension that some states are not according priority to fiscal discipline, which was not the case earlier.

He also emphasised on strengthening the Centre-state relationship through institutional mechanisms.

Addressing the 'Skoch Summit' here, he said the should look at ways to further accelerate the reforms process pertaining to the factors of production -- labour, land, capital.

Speaking at the event, Bibek Debroy, Chairman, to the Prime Minister, said there is a need to re-examine all institutional structures to push the country's growth.

He said India's per capita income is approaching the USD 2,000 mark and it would increase further, but there will still be challenges.

"Yes, India's per capita income will go up, yes will be transformed by 2030 or 2040, but all said and done will still remain relatively poor," he said.

First Published: Sat, December 22 2018. 14:10 IST
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