The Reserve Bank of India (RBI) emphasized the importance of quality expenditure, prudent borrowing strategies, and efficient cash management for enhancing states' fiscal sustainability during a conference on October 27, 2026.
The 36th Conference of State Finance Secretaries, held at RBI in Mumbai, focused on the theme 'Role of Quality of Expenditure, Effective Cash and Prudent Debt Management in Enhancing States’ Fiscal Sustainability'. Attended by finance secretaries from 27 states and three Union Territories, senior officials from various departments, and inaugurated by the Governor of RBI, the conference emphasized the need for states to maintain quality expenditure for long-term fiscal health. The Governor also advocated adopting prudent borrowing strategies and efficient cash management practices.
The Governor encouraged states to utilize the Unified Lending Interface (ULI) and Programmable Central Bank Digital Currency (P-CBDC) for Direct Benefit Transfers (DBT). He advised effective use of the State Level Bankers’ Committee (SLBC) forum. During the conference, a booklet titled ‘Compendium on Cash and Debt Management for State Governments’ was released, summarizing relevant concepts and good practices.
The meeting reviewed market borrowings by states, short-term financial accommodation to states from RBI, adoption of Benchmark Issuance Strategy by the states, among other topics.
Source:
Reserve Bank of India
