business / news / / CNBC TV18
Madhavi Arora, Chief Economist, Emkay Global Financial Services, said the growing trend of ‘freebie economics’ could significantly strain state finances.
West Bengal's incremental fiscal burden from recent poll promises could rise to 3.4% of GDP.
KEY POINTS
- 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
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