The 33rd Conference of State Finance Secretaries was successfully held in Mumbai on July 6, 2023, under the theme of ‘Debt Sustainability: States’ Perspective.’ In the presence of the Reserve Bank of India (RBI) Governor, the conference served as a platform for Finance Secretaries from 23 states, one Union Territory, and officials from the Ministry of Finance, Controller General of Accounts, and Comptroller and Auditor General of India to engage in discussions focusing on crucial aspects of fiscal health.
RBI Governor Shaktikanta Das played a prominent role in the conference, highlighting the significance of fiscal consolidation and the improvement of expenditure quality for the states. Stressing the importance of long-term fiscal health, he urged states to prioritize these areas in their financial planning.
Governor Das underscored the need for debt sustainability among the states. Recognizing that excessive debt could pose risks to their fiscal health, he called upon them to adopt effective debt management measures to maintain stability.
The conference provided a platform to review various financial matters related to states’ fiscal health. Topics of discussion included market borrowings by the states, administration of the Consolidated Sinking Fund and Guarantee Redemption Fund, state government guarantees, and short-term financial accommodations provided by the Reserve Bank.
Governor Das also emphasized the significance of addressing contingent liabilities and guarantees in the fiscal health of states. Managing and monitoring these liabilities effectively is crucial to prevent any adverse impact on the states’ finances.
A key highlight of the conference was the unanimous agreement on the importance of allocating increased funds for sectors like health, education, infrastructure, and green energy transition. The participants emphasized the need for states to prioritize these sectors and consider them as vital components of capital planning, rather than areas subject to budgetary cutbacks.
The 33rd Conference of State Finance Secretaries served as a platform to discuss critical aspects of debt sustainability and fiscal health. The insights shared and recommendations made during the conference are expected to contribute to the long-term financial well-being of states and enable them to prioritize key sectors essential for sustainable development and progress.