
Both the print media
and some commentators on the Indian economy are convinced that the finances of
states are not that well managed and, indeed, that the states are drowning in
debt. By and large, this is not true. Since the recommendations of the XIIth Finance
Commission came into force, which provided for consolidation and write off of
certain amounts of state debt, subject to rigorous conditionalities, the
outstanding debt of most states has improved. Today, many are nearer the XIIth
F
Continue reading “The tills still ring, and the wolf’s at bay”
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