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RBI warns state budgets' focus on welfare may undermine long-term infrastructure needs.
The Reserve Bank of India (RBI) has expressed concern that welfare-centric schemes in states' 2024-25 budgets could reduce funding for critical infrastructure.
The RBI recommends prioritizing infrastructure investments over short-term welfare measures to ensure long-term economic growth.
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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RBI advierte que el enfoque de los presupuestos estatales en el bienestar puede socavar las necesidades de infraestructuras a largo plazo.