Rangarajan, C.Prasad, Abha2012-04-272012-04-272012-04https://hdl.handle.net/10986/6041The paper presents the policymakers perspective on the reforms undertaken to manage states debt and ensure solvency. While the sustained high growth rates of the Indian economy played a part in alleviating the interest burden on debt and ensuring that the debt does not grow in an explosive trajectory, major reforms were implemented to reverse the fiscal decline, develop fiscal responsibility rules to ensure sustained adjustment, and move toward a market-based financing of state deficits. The serious efforts at fiscal consolidation and institutional reforms have enabled states to set on the path toward fiscal correction. Nonetheless, weak global growth prospects and the risk of a further rise in global commodity and fuel prices could generate the dilemma of needing to compress expenditures for ensuring fiscal sustainability while simultaneously needing counter-cyclical spending to boost growth, and challenge the fiscal adjustment process.CC BY 3.0 IGOACCESS TO RESOURCESACCOUNTINGACCOUNTING POLICIESACCUMULATION OF DEBTACTIVE DEBTAMORTIZATIONARREARSBAILOUTSBANK DEPOSITBANK POLICYBANK RATEBANKING SECTORBASIS POINTSBORROWING REQUIREMENTSBUDGET CONSTRAINTSBUDGET MANAGEMENTCAPITAL EXPENDITURESCASH MANAGEMENTCENTRAL TRANSFERSCLEARING CORPORATIONCOMMERCIAL BANKSCONTINGENT LIABILITIESCONTINGENT LIABILITYCOUNTRY COMPARISONSCREDIBILITYCREDIT FACILITYCREDIT RATING AGENCIESCREDIT RATINGSCREDIT RISKCREDIT STRENGTHCREDITORCURRENCYCURRENT ACCOUNTCURRENT EXPENDITURESDEBTDEBT ACCUMULATIONDEBT BURDENDEBT COMPOSITIONDEBT CONSOLIDATIONDEBT FINANCEDEBT FORGIVENESSDEBT LEVELDEBT LEVELSDEBT MANAGEMENTDEBT OBLIGATIONSDEBT RELIEFDEBT REPAYMENTDEBT RESTRUCTURINGDEBT SERVICEDEBT SERVICE PAYMENTSDEBT SWAPDEBTSDECENTRALIZATIONDEFAULT RISKDEFAULTSDEFICIT FINANCINGDEFICITSDEMAND DEPOSITSDEMAND FOR CREDITDEPOSITDEPOSIT INTERESTDEPOSITSDEVELOPMENT BANKSDEVOLUTIONDISCLOSURE NORMSDOMESTIC BORROWINGSDOMESTIC CREDITDOMESTIC CREDIT RATINGECONOMIC ACTIVITYECONOMIC GROWTHECONOMIC POLICYEXCHANGE RATEEXCHANGE RATESEXPENDITUREEXPENDITURESEXTERNAL BORROWINGEXTERNAL DEBTEXTERNAL SHOCKSFINANCESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARYFINANCIAL MANAGEMENTFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL SECTOR LIBERALIZATIONFINANCING NEEDSFINANCING REQUIREMENTSFISCAL AUTONOMYFISCAL CAPACITYFISCAL CONDITIONSFISCAL DEFICITFISCAL DEFICITSFISCAL DISCIPLINEFISCAL LEGISLATIONFISCAL POLICIESFISCAL POLICYFISCAL REFORMFISCAL REFORMSGOVERNMENT BONDSGOVERNMENT BORROWINGGOVERNMENT BUDGETGOVERNMENT DEBTGOVERNMENT DEFICITGOVERNMENT EXPENDITUREGOVERNMENT FINANCEGOVERNMENT FINANCESGOVERNMENT GUARANTEEGOVERNMENT GUARANTEESGOVERNMENT SECURITIESGOVERNMENT SPENDINGGRACE PERIODGREATER ACCESSGROSS DOMESTIC PRODUCTHOUSEHOLD SAVINGSIMPLICIT SOVEREIGN GUARANTEEINDEBTEDNESSINFLATIONINSTITUTIONAL REFORMINSTITUTIONAL REFORMSINTEREST BURDENINTEREST COSTSINTEREST PAYMENTINTEREST PAYMENTSINTEREST RATESINTERNATIONAL BANKISSUANCEISSUANCE OF GUARANTEESKEY CHALLENGELAWSLENDING POLICYLIABILITYLIQUIDITYLIQUIDITY MANAGEMENTLOANLOAN GUARANTEESLOAN PROCEEDSLOANS FROM BANKSLOCAL GOVERNMENTLOCAL GOVERNMENTSMACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMACROECONOMIC STABILIZATIONMARKET ACCESSMARKET BORROWINGMARKET BORROWINGSMARKET CONDITIONSMARKET DEVELOPMENTSMARKET DISCIPLINEMARKET INTEREST RATEMARKET INTEREST RATESMARKET PARTICIPANTSMATURITIESMATURITYMONETARY FUNDMONETARY POLICYMORAL HAZARDMULTILATERAL DEVELOPMENT BANKSMUNICIPAL BONDMUNICIPAL BOND MARKETNEW MARKETOUTSTANDING DEBTOVERDRAFTOVERDRAFT FACILITYOVERDRAFTSPAYMENT DEFAULTSPENSIONPENSIONSPOLITICAL ECONOMYPORTFOLIOPORTFOLIOSPRIVATIZATIONPUBLIC DEBTPUBLIC ENTERPRISESPUBLIC FINANCEPUBLIC INVESTMENTSRATES OF INTERESTRECEIPTRECEIPTSREDEMPTIONREPAYMENT DISCIPLINEREPAYMENTSREPOREPO RATERESERVERESERVE BANKRESERVE BANK OF INDIARESERVESRESOURCE MOBILIZATIONRETIREMENTRETURNSREVENUE SHARINGRISK MANAGEMENTRISK PREMIUMSRURAL ACCESSSAVINGS BANKSAVINGS RATESAVINGS SCHEMESSELF-REGULATIONSETTLEMENTSHORT-TERM BORROWINGSINKING FUNDSOCIAL SECURITYSOLVENCYSTATUTORY LIQUIDITYSTATUTORY REQUIREMENTSSTRUCTURAL ADJUSTMENTSTRUCTURAL DEFICITSSUBNATIONAL DEFICITSSUBNATIONAL FINANCESSUBNATIONAL GOVERNMENTSSUPPLY OF CREDITTAXTAX COMPLIANCETAX EXEMPTTAX RATETAX RATESTAXATIONTERM CREDITTERM DEPOSITSTOTAL DEBTTRANSPARENCYTREASURYTREASURY BILLSTURNOVERUNIONWAGESYIELD SPREADSWorld Bank10.1596/1813-9450-6039