Ex-chief of finance panel calls for more capex, state-wise debt sustainability

At a meeting of state and finance ministry officials and ministers, Singh urged states to undertake higher capital expenditure

NEW DELHI: N K Singh, chairperson of the 15th Finance Commission, has proposed a state-wise debt sustainability, while noting that they may find it “daunting” to lower the general govt debt level from 84% to 73%, as was proposed by the 16th Finance Commission.He, however, said that the Centre is on course to achieve the recommended debt target of 50%, plus or minus 1%, by 2030-31 despite global turmoil. At a meeting of state and finance ministry officials and ministers, Singh urged states to undertake higher capital expenditure to boost demand for steel and cement and jobs. He also urged states to capture off-budget borrowings, guarantees, unpaid bills, arrears to utilities and suppliers, state PSU funds, and review loss-making companies.“Debt sustainability varies across states. I suggest that RBI or the ministry of finance, supported by the C&AG, could undertake an independent assessment, with specific thresholds for each state, to determine a path,” he said.