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Indian MP urges ban on cash transfers when debt exceeds 20% to protect fiscal stability.
Congress MP Manish Tewari has called for a ban on cash transfer schemes in Indian states and at the central level when debt-to-GDP ratios exceed 20%, warning such practices threaten fiscal stability and democratic integrity.
Speaking in the Lok Sabha on December 10, 2025, he cited data showing 18 of 28 states surpassed a 30% debt-to-GDP ratio in 2023-24 and urged a constitutional amendment to prohibit these transfers, ideally limiting the threshold to 10%.
Tewari argued that election-driven freebies lead to unsustainable spending, rising fiscal deficits, and long-term debt burdens, including borrowing to pay interest.
A report by Emkay Research supports this, noting that welfare spending often remains elevated post-election, creating lasting fiscal pressure.
El MP indio insta a prohibir las transferencias de efectivo cuando la deuda excede el 20% para proteger la estabilidad fiscal.