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Blog Entry# 5482311
Posted: Sep 20 2022 (22:34)

20 Responses
Last Response: Sep 20 2022 (22:41)
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Sep 20 2022 (22:34)  
TouristerDivyanshu^~
TouristerDivyanshu^~   173443 blog posts
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Entry# 5482311              
After the crisis in Sri Lanka’s economy, RBI did an analysis on the fiscal vulnerability of Indian states.
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Thread by Anshul Gupta..
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Sep 20 2022 (22:40)
TouristerDivyanshu^~
TouristerDivyanshu^~   173443 blog posts
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Re# 5482311-16              
3. and the ballooning overdue of DISCOMs - state governments provide subsidise electricity by, artificially reducing the cost of electricity for agriculture and low income households.
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Sep 20 2022 (22:41)
TouristerDivyanshu^~
TouristerDivyanshu^~   173443 blog posts
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Re# 5482311-17              
State governments also lend capital to power distribution companies so they can undertake investment. But in many cases, states have had to take over either the losses or the debt burden of the DISCOMs.
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Sep 20 2022 (22:41)
TouristerDivyanshu^~
TouristerDivyanshu^~   173443 blog posts
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Re# 5482311-18              
What is the solution to this problem?

In the near term, as per the RBI, governments would have to reduce expenditure on non-merit goods. In the medium term, these states would have to focus on stabilising the debt burden.
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Sep 20 2022 (22:41)
TouristerDivyanshu^~
TouristerDivyanshu^~   173443 blog posts
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Re# 5482311-19              
And large-scale reform is needed in the power sector to make the DISCOMs financially sustainable and operationally efficient. In the long term, they would have to increase expenditure to help create long-term assets, generate revenue and boost operational efficiency.
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Sep 20 2022 (22:41)
Boxerbhai_432~
Boxerbhai_432~   12105 blog posts
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Re# 5482311-20              
Andhra public nothing to do with this they didn't ask for seperation at all, they raw deal with minus budget, to accomadate loss more and more loans taken
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