States must step up capex, says RBI governor Shaktikanta Das

Quality spending can have multiplier effect, says Das

Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said fiscally prudent states must step up their quality expenditure in a way that it would have a multiplier effect on the economy and would prompt other states to increase their own capital expenditures.

Das stressed that the quality of expenditure by states was important as they incurred 60 per cent of the general government expenditure (the Centre plus state combined), whereas the global average of sub-national spending was just about 30 per cent.

“The state finances and the expenditures by states do play an important role in the growth