RBI assesses budget stress and risk of ‘gifts’
Amid a raging debate over the culture of gift-giving and its negative impact on the treasury, the Reserve Bank of India (RBI) is conducting a “fiscal stress and risk” assessment of various states and territories in the Union and asked for details of the subsidies given by them on agriculture, food and energy among others.
As all departments remained unresponsive, the Delhi government’s finance department issued a reminder to department heads on September 22, urging them to respond to the RBI’s six-point questionnaire.
The central bank wants to know whether the state government has bailed out troubled financial institutions of municipal corporations/non-financial corporations in the past five years and its financial impact; if he has revoked bank guarantees; number of state government employees, etc. According to the mail sent to the finance department by the RBI, the responses to the questionnaire should be sent to the director, Kirti Gupta, but there has been no response till date. “Have the guarantees given by the state government been realized/invoked within the last 5 years?” Has the state government faced any natural disaster in the past 5 years? What is the number of state government employees in the age bracket of 50-55 and 55-60 (executive-wise)? (For the assessment of the pension burden in the next 10 years),” the letter read.
“What is the cost to the state government due to agricultural loan waivers in 2019-20, 2020-21, 2021-22, and 2022-23? State with respect to agriculture, food, electricity sector and other subsidies from 2019-20 to 2022-23?,” the questionnaire reads.
The detailed information has been sought by the Department of Economic and Policy Research, Government of India, as the Governor of the RBI wants a detailed assessment of the fiscal tensions/risks of individual States/Union Territories.
“A considerable amount of time has already elapsed, but no information has been received from your department/organization till date. It is therefore again requested to look into the matter and direct the relevant officer to provide the required detailed compiled information to this department within one week on a priority basis,” read Gupta’s statements. limits and free rides for women on DTC buses The AAP government of Punjab has also provided free electricity and AAP leaders have pledged free electricity, loan waivers in Gujarat and l Himachal Pradesh.
Prime Minister Narendra Modi had recently denounced the competitive populism of handing out “revdis” (free gifts), which not only waste taxpayers’ money but also cause economic losses.