CAG Urges States to Create Odisha-like Budget Buffers

Imagine states are like families that have good months when they earn a lot and bad months when they spend more.

The CAG, which checks how governments spend money, told all states to learn from Odisha.

Odisha created a special savings account, called a budget stabilization fund, for rainy days.

They put extra money from mining into this fund, which is managed by the Reserve Bank of India.

If Odisha faces a crisis, like a natural disaster or a sudden drop in income, they can use this money without having to borrow a lot.

The CAG wants other states that have extra money during good times to do the same thing, so they are prepared for tough periods and can manage their budgets better.