Mumbai: In a bid to bring about fiscal discipline in states, a RBI working group on Thursday came out with far reaching recommendations including mandatory publishing of information regarding their liabilities in the budget.
In its report, the working group said that the state government budget documents should give total break up of budgetary liabilities of states.
These include open market borrowing, loans from Centre, borrowing from banks and financial institutions and special securities issued to National Small Savings Fund (NSSF).
Giving the format for publishing the details of the state government liabilities, it said details of guarantees given by the state government, fiscal risks, off-budget borrowing, liabilities of State PSUs and other implicit liabilities like pensions should also be detailed in the budget.
It also suggested an additional statement on subsidies provided by state government. The working group recommended that Comptroller and Auditor General of India (CAG) may publish audited data on liabilities in addition to the Finance Accounts of the States.
The group, however, suggested that the non-availability of the data should not delay the reporting of data on liabilities, even if they were unaudited.
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