The Union government’s fiscal discipline has not been matched by state fiscal discipline, thanks to the tendency to promise unconditional freebies to the electorate.
Dismissing unconditional cash transfers through the parochial logic of ‘unearned assistance is undeserving’ narrows the space for policy innovation and restricts possibilities for social mobility.
In 2025-26, Bihar is estimated to spend Rs 1,08,094 cr on committed expenditure, which is 42% of its estimated revenue receipts. This offers little scope for spending on development.
Delhi has historically been in revenue surplus, but last 2 years have seen a deceleration. Subsidies & cash transfers may escalate the deficit, unless accompanied by a hike in revenues.
Indian middle class seethes at growing phenomenon of political parties taking their tax money and spraying it among the more numerous poorer classes to buy their votes.
Global media also took note of the railway accident in Maharashtra, writing about safety of train travel in India, as well as the reality of the economic downturn in the country.
Contrary to naysayers, the RSS practices what it preaches. It is closer to the Gandhian teaching of improving the individual morally and spiritually to change the external environment.
CM Yogi Adityanath claims that from being called a ‘bimaru’ state, UP is now among the top-3 economies in India. The 2026 Budget session of the UP assembly is currently underway.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
Centre should stop giving guarantees for state debt. In return, centre can devolve more funds to states, by say, removing excise duty on petrol, but handover MSP procurement to states.
But also add, a rule, that if, a state defaults on it’s debt, then it must be placed under economic emergency, and austerity measures be applied.
Centre should stop giving guarantees for state debt. In return, centre can devolve more funds to states, by say, removing excise duty on petrol, but handover MSP procurement to states.
But also add, a rule, that if, a state defaults on it’s debt, then it must be placed under economic emergency, and austerity measures be applied.
Indian politicians have PhDs in freebies. They don’t know anything other than freebies and corruption.