Archive · 23 Dec 2025

States rush spending in fiscal year's final months

States rush spending in fiscal year's final months

State governments in India tend to spend a lot of money in the last two months of the fiscal year, which is February and March.

This is because they want to finish projects and pay bills before the year ends to avoid losing money.

This rush in spending causes money problems and makes states borrow money quickly.

A report says that states should spread out their spending more evenly throughout the year to avoid these problems.

The report also mentions that states are using up their usual borrowing options and have to use other ways to get money when they need it quickly.

Sources