RBI stressed the need for states to exercise caution on off-budget borrowings to ensure fiscal health.
MUMBAI (India CSR): The Reserve Bank of India (RBI) hosted the 35th Conference of State Finance Secretaries in Mumbai, bringing together top officials to deliberate on fiscal policies and financial management strategies. The central theme of the meeting was “Journey towards Economic Prosperity through the Path of Fiscal Consolidation.”
The conference witnessed participation from the Secretary, Department of Expenditure, Ministry of Finance, Finance Secretaries of 28 states and two Union Territories, along with senior representatives from the Ministry of Finance, the Controller General of Accounts, and the Comptroller and Auditor General of India. RBI Governor inaugurated the conference and set the tone for discussions.
In his address, the Governor underlined the critical role of fiscal discipline in achieving long-term economic stability and prosperity. He highlighted the importance of improving the quality of public expenditure and urged states to exercise caution on off-budget borrowings, which often pose risks to fiscal health.
The Governor also pointed to the need for closer coordination between states and the RBI in implementing key initiatives such as currency management, financial inclusion measures, and the Unified Lending Interface (ULI), which aim to strengthen India’s financial ecosystem.
The meeting carried out a comprehensive review of state cash management practices, market borrowings, and strategies for fiscal consolidation. Officials exchanged views on aligning fiscal policies with the larger goal of sustaining economic growth while ensuring financial prudence.
The conference reaffirmed the RBI’s commitment to work with state governments in creating a stronger, more resilient fiscal framework. The deliberations are expected to guide states in adopting best practices for debt management, transparent budgeting, and sustainable financial planning, supporting India’s broader economic development goals.
| Key Fact | Details |
|---|---|
| Event | 35th Conference of State Finance Secretaries |
| Date & Venue | September 18, 2025, Mumbai |
| Organiser | Reserve Bank of India (RBI) |
| Theme | Journey towards Economic Prosperity through the Path of Fiscal Consolidation |
| Participants | Finance Secretaries of 28 States and 2 Union Territories, Secretary Department of Expenditure, senior officials from Finance Ministry, CGA, CAG |
| Inauguration | RBI Governor |
| Governor’s Key Message | Emphasised fiscal discipline, better quality of expenditure, and caution on off-budget borrowings |
| Discussion Points | Cash management, market borrowings, fiscal consolidation, coordination with RBI |
| Focus Areas | Currency management, financial inclusion, Unified Lending Interface (ULI) |
| Outcome | Strengthened resolve for fiscal prudence and cooperative federalism in economic management |
(India CSR)
