The Reserve Bank of India on Tuesday convened the 36th Conference of State Finance Secretaries in Mumbai, centred on the theme 'Role of Quality of Expenditure, Effective Cash and Prudent Debt Management in Enhancing States' Fiscal Sustainability', according to an RBI release reported by The Hindu BusinessLine.

Source: The Hindu BusinessLine

Governor Sanjay Malhotra emphasised the importance of maintaining the quality of expenditure to ensure the long-term fiscal health of the states, and the need for states to adopt prudent borrowing strategies and efficient cash management practices, Informist reported, citing the RBI release.

Source: Informist

Finance secretaries from 27 states and three Union Territories attended, along with senior officials from the Union Finance Ministry, the Controller General of Accounts and the Comptroller and Auditor General of India, ANI reported.

Source: ANI

Participants reviewed states' market borrowings, the short-term financial accommodation provided by the RBI and adoption of the Benchmark Issuance Strategy introduced this financial year. The Governor released a 'Compendium on Cash and Debt Management for State Governments' at the meeting, the RBI said.

Malhotra also urged states to onboard onto the Unified Lending Interface (ULI), make maximum use of Programmable Central Bank Digital Currency (P-CBDC) for Direct Benefit Transfers, and make effective use of the State Level Bankers' Committee forum, BusinessLine reported. These were recommendations to states, not announced changes to borrowing rules.