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States may cause fiscal slippage because of populist schemes, warns RBI

Loan waivers, income support schemes are 'poor fiscal marksmanship', says RBI in meeting with Finance Commission.

Currently, DBT is given to fertiliser companies who sell at a subsidised rate to farmers
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Farm loan waivers may hurt states' fiscal deficit target, warns RBI.

Press Trust of India Mumbai
States are following "poor fiscal marksmanship" with farm loan waivers, income support schemes and bonds for power distribution companies, said the Reserve Bank of India (RBI) on Wednesday.

Many states and the Central government, in the run up to Lok Sabha elections, have announced sops to marginalised sections, including the farmers and the poor.

The RBI cautioned against such policies in a meeting between its governor, Shaktikanta Das, and deputy governors and members of the 15th Finance Commission in Mumbai.


The RBI, in

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