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flag RBI warns state budgets' focus on welfare may undermine long-term infrastructure needs.

flag The Reserve Bank of India (RBI) has expressed concern that welfare-centric schemes in states' 2024-25 budgets could reduce funding for critical infrastructure. flag The RBI recommends prioritizing infrastructure investments over short-term welfare measures to ensure long-term economic growth. flag Despite the central government's fiscal discipline, the RBI warns that the effectiveness of increased social spending depends on achieving tangible outcomes.

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