Reserve Bank of India Governor Sanjay Malhotra addressed the 36th Conference of State Finance Secretaries in Mumbai, urging state administrations across the country to maintain strict fiscal discipline and adopt prudent debt management strategies. Emphasizing the vital connection between regional fiscal health and national macroeconomic stability, Governor Malhotra advised financial administrators to prioritize capital expenditures over revenue consumption to ensure sustainable economic expansion.
During his keynote address, the central bank governor highlighted the imperative of curtailing off-budget borrowings, managing contingent fiscal liabilities, and building adequate consolidated sinking funds. Malhotra stressed that directing public funds toward durable productive assets such as transportation infrastructure, digital connectivity, and healthcare delivery generates multiplier effects that foster long-term revenue growth. The conference gathered top finance officials from states and Union Territories alongside senior central banking executives to review debt sustainability metrics, cash management facilities, and market borrowing calendars for upcoming fiscal quarters.
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Sources:
https://www.thehindu.com/business/rbi-governor-asks-states-to-adopt-prudent-borrowing-strategies/article71633065.ece