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States were becoming increasingly autonomous on funding pre-pandemic

Some were even on the verge of reducing central liability to zero

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Sachin P Mampatta Mumbai
State governments were reducing their dependence on central government debt ahead of the Covid-19 pandemic.

Loans and advances from the centre had dropped from 4.6 per cent of outstanding liabilities in March 2016 to 3 per cent by March 2020, shows Reserve Bank of India (RBI) data. This declining trend has reversed following the impact of the pandemic on state finances.


The government’s offer of additional loans to states

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First Published: Feb 21 2022 | 7:36 PM IST

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