The Reserve Bank of India (RBI) is documenting complaints about financial constraints in a number of provinces and calling for remedial action against five of the world’s worst debtors, some saying the test was flawed and others pointing to a rise in wages. calls for cost reduction.
Commenting on the economic crisis in Sri Lanka, an RBI article prepared by a team of economists under the leadership of Deputy Governor Michael Debabrata Patra on Thursday revealed that the five most indebted countries – Punjab, Rajasthan, Bihar, Kerala, and West Bengal – – need to be remedied.
State funds are at risk of a variety of unexpected shocks that could reverse their financial results, resulting in a decline compared to their budgets and expectations, he said.
“The recent economic crisis in neighboring Sri Lanka is a reminder of the critical importance of public debt sustainability. The financial situation among the Indian subcontinent is showing warning signs of construction pressure,” he said.
In some states, he added, shocking could increase their debt significantly, with financial challenges to be resolved.