GVA growth is expected to be higher at 7.3% in 2017-18,” the FSR said. While noting that the fiscal conditions of the Centre is on the mend, it expressed concerns on that of the states. “While Centre’s commitment to returning to rule based fiscal discipline is commendable, there are a few issues that need attention. One is the deterioration in the states’ fiscal conditions and the other is increased leverage of public sector undertakings. “This has implications for the further development of secondary market in government bonds, besides periodic redemption pressures,” the FSR added.

Source: Mint June 30, 2017 14:48 UTC