Nirmala Sitharaman Urges States to Curb Debt for Economic Growth

Finance Minister Nirmala Sitharaman emphasized the importance of transparency in fiscal management, urging states to adopt better practices to lower debt levels. The goal is to achieve a reduced debt-to-GDP ratio, aiming for India to reach developed nation status by 2047 through prudent financial measures.

During the Times Network India Economic Conclave, Finance Minister Nirmala Sitharaman stressed the need for states to adopt transparency in fiscal management as practiced by the central government.

Sitharaman highlighted the central government's success in reducing the debt-to-GDP ratio from over 60 percent post-COVID to 57.1 percent in the 2023-24 fiscal year.

She urged states to focus on accountability to ensure debt-to-GSDP levels are kept within limits, emphasizing that unmanaged debt prevents borrowing for developmental purposes and hampers economic growth.