Columnists

Aditi Nayar

Aditi Nayar is principal economist, ICRA Limited.

Centre must step up cash flow to states

Thu, Jul 08, 2021

Aditi Nayar writes: By increasing tax devolution, Centre can help states tide over another uncertain year and make spending comfortable for them

Resource crunch in states will follow Covid second wave

Mon, May 31, 2021

Fiscal concerns will be fanned by spike in infections and the associated healthcare costs

Fifteenth Finance Commission has increased proportion of grants conditional on reforms by states

Tue, Feb 23, 2021

The question is whether this will force the states to move on both the power sector reforms, which have proven challenging in the past, and the municipal reforms, so that their resource availability may be enhanced.

Amid the uncertainty, this year will see a sobering expansion in fiscal deficit

Tue, Jul 21, 2020

However, amidst all these concerns, yields on government security appear remarkably sanguine, as if they are patiently waiting for the central bank to absorb the extra sovereign borrowings in the primary or secondary market.

The stress in state finances

Tue, Jan 28, 2020

Lower tax devolution, delays in GST compensation are potential risks

Subdued GST collections, lower tax devolution will impact state finances, pose macro risks

Fri, Oct 04, 2019

To avoid a substantial fiscal slippage at the state government level, a sizeable expenditure reduction or deferral is likely to be required, given that the borrowing limit set by the central government acts as a soft constraint to the size of the states’ fiscal deficits.