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Fiscal reform: J-PAL’s Dhaliwal urges states to fix finances for faster poverty reduction; calls for scheme rationalisation and focus on human capital

States must strengthen their financial position to accelerate poverty reduction and ensure sustained development, Iqbal Singh Dhaliwal, Global Executive Director of the Abdul Latif Jameel Poverty Action Lab (J-PAL), part of the Massachusetts Institute of Technology (MIT), has said.“The central government’s fiscal deficit is fine, but the state governments are facing considerable challenges in terms…

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State finances: Salaries, pensions and interest expenditure rises 2.5 times in 10 years; subsidy outlay triples

States’ expenditure on salaries, pensions, and interest payments has surged nearly 2.5 times over the past decade, highlighting the rising share of committed spending in state budgets, according to the latest report by the Comptroller and Auditor General of India (CAG).The report, State Finances 2022-23, shows that combined committed expenditure across 28 states rose to…

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