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Not all states are so financially weak that they can't announce freebies

However some such as Punjab and West Bengal are not on sound financial ground

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The Punjab exchequer make take a Rs 5,000-crore hit if the state offers 300 units of power free of cost, without raising the rates for those who consume more than that threshold

Indivjal Dhasmana New Delhi

12 min read Last Updated : Apr 16 2022 | 12:43 AM IST

Several top bureaucrats are reported to have briefed prime minister Narendra Modi that some states could become like cash-strapped Sri Lanka or Greece due to the freebies they have announced. The bureaucrats are reported to have said that announcements made by Punjab, Delhi, Telangana, Andhra Pradesh and West Bengal are unsustainable.

While the likelihood of these states going the Lanka or Greece way may be an alarming assessment, the financial situation of some states such as Punjab and West Bengal is indeed quite weak. Let us examine the financial position of the states cited above by the bureaucrats, along with

Topics : Capital Expenditure Arvind Kejriwal Mamata Banerjee state finances GSDP Capex spending AAP BJP Yogi Adityanath Narendra Modi