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.
The collusion between the new class of bureaucrats, politicians, businessmen and trade union bosses perpetuates itself partly because of the short-run benefits and partly because they see no way out of the system, wrote author MH Mody in 1980.
IAF is firming up plans to revamp airlift capabilities with medium transport aircraft that will be assembled in India & serve as its main workhorse. Embraer is leading contender as of now.
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