Reserve Bank Holds 33rd Conference Of State Finance Secretaries

The 33rd Conference of State Finance Secretaries was held in Mumbai on July 6, 2023, attended by numerous finance officials across India. The primary themes included Debt Sustainability and Fiscal Consolidation. RBI Governor Shaktikanta Das highlighted the need for fiscal consolidation, debt management for long-term fiscal health, and cautioned about the negative impact of contingent liabilities on state's fiscal health. Several topics such as market borrowings, administration of Consolidated Sinking Fund and Guarantee Redemption Fund, state government guarantees, and short-term financial accommodation were discussed. The conference emphasized allocating more funds for sectors like health, education, infrastructure, and green energy transition.

Important Points to remember:

  1. Understand the role of the RBI and its Governor in fiscal policy-making.
  2. Familiarize with the terms ‘Debt Sustainability’ and ‘Fiscal Consolidation’.
  3. Understand the potential risks of excessive debt and contingent liabilities.
  4. Learn about the administration of the Consolidated Sinking Fund and Guarantee Redemption Fund.
  5. Recognize the importance of allocating funds to health, education, infrastructure, and green energy sectors.