Reserve Bank likely to help states to analyse, frame their capex numbers

As of now, the states are handicapped because there is no format they can borrow from the centre to guide them on tracking their capex except the financial support

The Reserve Bank of India (RBI) could help the state governments to frame their capital expenditure budgets so that they provide more base for growth in their economies.

The stakes are high for both the states and the RBI as their banker. In FY23, the states had a combined headroom to borrow about Rs 9 trillion from the markets, mostly to finance their projects. The central government’s support of Rs 1 trillion in FY23 and Rs 1.3 trillion in FY24 is also a soft loan. While the actual borrowing fell short on both heads, the RBI is concerned that a