Navigating Public Finances: Balancing Borrowing and Growth

Finance Minister Nirmala Sitharaman emphasizes the importance of prudent fiscal management, warning against political influence in public finance due to long-term impacts. Launching the NITI NCAER States Economic Forum, she highlights the need for responsible borrowing and data-driven decisions to aid states in revenue augmentation and debt management.

Finance Minister Nirmala Sitharaman underscored the critical need for fiscal prudence, cautioning against political maneuvering in public finance, highlighting its profound long-term repercussions for the central and state governments.

During the launch of the 'NITI NCAER States Economic Forum' portal, Sitharaman stressed that borrowing should be judicious to prevent it from becoming a future debt burden. She pointed out that effective debt management is as crucial as mobilizing resources for public projects, reiterating the global challenges posed by burgeoning national debts.

She cited the collaborative deliberations at the GST Council, where finance ministers work across political lines to make revenue decisions that protect the common man. The forum aims to enhance state-level fiscal responsibility through access to authentic data, encouraging informed policy decisions and fostering greater state engagement.

(With inputs from agencies.)