# Madhavi Arora, Chief Economist, Emkay Global Financial Services, said the growing trend of ‘freebie economics’ could significantly strain state finances.

*business · news · 2026-05-06 · CNBC TV18*

## Key points

- West Bengal's incremental fiscal burden from recent poll promises could rise to 3.4% of GDP.
- State bond spreads over central government securities have reached a historic high of 70-75 basis points.
- States, on average, overestimate revenue receipts by 10% in their budgets over the past decade.
- Combined central and state borrowing could surpass ₹31 lakh crore, heightening bond market pressure.
- Over 62% of state revenue is already committed to salaries, pensions, and interest payments.

**Companies:** Emkay Global Financial Services, Franklin Templeton Fixed Income India
**Countries:** India

[Read the full story on CNBC TV18](https://www.cnbctv18.com/economy/freebie-burden-may-strain-state-finances-push-borrowing-higher-economists-19899841.htm)

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