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In dire straits

Financing needs of states must be addressed urgently

Topics
Coronavirus | Indian Economy | Lockdown

Business Standard Editorial Comment 

The extension of the lockdown and the continued rise in the number of Covid-19 cases suggest that the Indian state and the economy are headed for real tough times. The difficulties can rise manifold, given the fact that state governments, which have been at the front line of the battle against Covid-19, have run out of resources, only partly because Central fiscal transfers have been delayed.

The Reserve Bank of India has increased the limit for ways and means advances, but it will not be enough. As more information seeps out, the picture can be seen to be dire, with almost all state ...

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First Published: Tue, May 05 2020. 23:37 IST
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