The Centre has launched a new incentive scheme that offers priority access to a 3000 crore SASCI pool for states that show fiscal discipline. Better debt management, tighter borrowing practices, and improved fiscal transparency will be key criteria. The move is designed to strengthen fiscal governance and improve debt sustainability across states while incentivising responsible budgeting.
Under the SASCI scheme, India’s states have pushed capital expenditure to about 2.7% of GDP, but the rollout of central loans remains uneven. Madhya Pradesh and Maharashtra are using funds more aggressively, while Kerala and Telangana lag. Analysts point to fiscal constraints and structural differences as key reasons for the gap in uptake.
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