Context
With the global economic scenario and slowing down demand in advanced economies with continued aggressive monetary tightening by central banks, the States’ effective investments can ramp up their spending which will have a critical bearing on the pace of the Indian economy.
About
The States and Expenditure:
How State Expenditure can help for growing Economy?
In response to the financial slowdown and its impact on the economy, the government plays a key role by increasing its spending to boost economic growth. Some of the roles include;
Impact of government spending on the economy
Possible implications:
The Union government has recently clarified that henceforth; off-budget borrowings would be considered as borrowing of the state government and would be subject to the provisions of Article 293(3) of the Constitution of India. |
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