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States need to adopt prudent borrowing strategy: RBI governor Shaktikanta Das

08 Jul , 2022   By : Monika Singh


States need to adopt prudent borrowing strategy: RBI governor Shaktikanta Das

RBI governor Shaktikanta Das on Thursday emphasised on the need for states to adopt prudent borrowing strategy and efficient cash management practices, keeping in view the evolving macroeconomic scenarios.

Inaugurating the 32nd Conference of the State Finance Secretaries (SFS) in Mumbai, he stressed that the states should focus on improving quality of expenditures, better handling and monitoring of contingent liabilities and improving the governance in the cooperative banks.

The Conference was attended by the officials from the ministry of finance, Government of India, Controller General of Accounts, Comptroller and Auditor General of India and the finance secretaries of 24 states and one Union Territory.

The governor highlighted the importance of the SFS Conference as an effective platform to deliberate on, and find out effective ways to address various issues relating to states’ debt and cash management.

The meeting reviewed, inter alia, market borrowings by the states and administration of the Consolidated Sinking Fund / Guarantee Redemption Fund. The other issues discussed in the meeting included quality of expenditure by the states, role of states in inflation control, debt management strategies of the states, the need for capacity building programmes for debt and cash management, and various operational matters.


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