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Economic Times
4 days ago
- Business
- Economic Times
Centre's debt grew slower than GDP: CAG
Synopsis India's debt accumulation slowed relative to GDP growth between FY21 and FY23, signaling positive debt sustainability, according to the Comptroller and Auditor General (CAG). The Centre's debt-to-GDP ratio, which peaked in FY21 due to the pandemic, eased to 57.93% in FY23. Additionally, debt repayment improved, freeing up borrowings for productive expenditure. Agencies New Delhi: The central government's debt accumulation grew at a slower pace between FY21 and FY23 than the country's gross domestic product (GDP) growth, the Comptroller and Auditor General (CAG) has said, indicating "positive" debt sustainability."Debt sustainability, as measured by the debt sustainability indicator, was positive in 2022-23, which is a positive indicator towards stability," the CAG said in a release. The statement comes after the supreme audit institution presented its report on the Centre's compliance of the Fiscal Responsibility and Budget Management Act, 2003, in FY23 in the Lok Sabha on Monday. The Centre's debt-to-GDP ratio increased from 49.34% in FY19 to a peak of 61.38% in FY21, it said, thanks to a pandemic-induced spike in borrowing and contraction in economic output. However, the ratio eased to 57.93% of GDP in FY23 from 58.76% in FY22."Public debt repayment to public debt receipts was 89.75% in FY19 but improved in FY23, and debt repaid was 81.22% of debt acquired during the year, freeing up borrowings for productive expenditure," the CAG said in the statement. The ratio of interest payments to revenue receipts reached its peak at 38.66% in FY21; it dropped to 33.99% in FY22 and again inched up to 35.35% in a separate report on the railway ministry, the CAG flagged cases of undercharges or overpayments of ₹543.17 crore. The report was presented in the Lok Sabha on Monday.
Los Angeles Times
12-07-2025
- Business
- Los Angeles Times
DOGE sprouts in red states, as governors embrace the cost-cutter brand and make it their own
HARRISBURG, Pa. — The brash and chaotic first days of President Donald Trump 's Department of Government Efficiency, once led by the world's richest man Elon Musk, spawned state-level DOGE mimicry as Republican governors and lawmakers aim to show they are in step with their party's leader. Governors have always made political hay out of slashing waste or taming bureaucracy, but DOGE has, in some ways, raised the stakes for them to show that they are zealously committed to cutting costs. Many drive home the point that they have always been focused on cutting government, even if they're not conducting mass layoffs. 'I like to say we were doing DOGE before DOGE was a thing,' Iowa Gov. Kim Reynolds said in announcing her own task force in January. Critics agree that some of these initiatives are nothing new and suggest they are wasteful, essentially duplicating built-in processes that are normally the domain of legislative committees or independent state auditors. At the same time, some governors are using their DOGE vehicles to take aim at GOP targets of the moment, such as welfare programs or diversity, equity and inclusion programs. And some governors who might be eyeing a White House run in 2028 are rebranding their cost-cutting initiatives as DOGE, perhaps eager to claim the mantle of the most DOGE of them all. At least 26 states have initiated DOGE-style efforts of varying kinds, according to the Economic Policy Institute based in Washington, D.C. Most DOGE efforts were carried out through a governor's order — including by governors in Florida, Iowa, Louisiana, Montana, New Hampshire and Oklahoma — or by lawmakers introducing legislation or creating a legislative committee. The state initiatives have a markedly different character than Trump's slash-and-burn approach, symbolized by Musk's chainsaw-brandishing appearance at a Conservative Political Action Committee appearance in February. Governors are tending to entrust their DOGE bureaus to loyalists, rather than independent auditors, and are often employing what could be years-long processes to consolidate procurement, modernize information technology systems, introduce AI tools, repeal regulations or reduce car fleets, office leases or worker headcounts through attrition. Steve Slivinski, a senior fellow at the libertarian Cato Institute who researches state government regulatory structures, said that a lot of what he has seen from state-level DOGE initiatives are the 'same stuff you do on a pretty regular basis anyway' in state governments. States typically have routine auditing procedures and the ways states have of saving money are 'relatively unsexy,' Slivinski said. And while the state-level DOGE vehicles might be useful over time in finding marginal improvements, 'branding it DOGE is more of a press op rather than anything new or substantially different than what they usually do,' Slivinski said. Louisiana Gov. Jeff Landry rebranded his 'Fiscal Responsibility Program' as Louisiana DOGE, and promoted it as the first to team up with the federal government to scrub illegitimate enrollees from welfare programs. It has already netted $70 million in savings in the Medicaid program in an 'unprecedented' coordination, Landry said in June. In Oklahoma, Gov. Kevin Stitt — who says in a blurb on the Oklahoma DOGE website that 'I've been DOGE-ing in Oklahoma since before it was cool' — made a DOGE splash with the first report by his Division of Government Efficiency by declaring that the state would refuse some $157 million in federal public health grants. The biggest chunk of that was $132 million intended to support epidemiology and laboratory capacity to control infectious disease outbreaks. The Stitt administration said that funding — about one-third of the total over an eight-year period — exceeded the amount needed. The left-leaning Oklahoma Policy Institute questioned the wisdom of that, pointing to rising numbers of measles and whooping cough cases and the rocky transition under Stitt of the state's public health lab from Oklahoma City to Stillwater. Oklahoma Democrats issued rebukes, citing Oklahoma's lousy public health rankings. 'This isn't leadership,' state Sen. Carri Hicks said. 'It's negligence.' Florida Gov. Ron DeSantis signed an executive order in February creating a task force of DOGE teams in each state agency. In the order, DeSantis recited 10 points on what he described as his and Florida's 'history of prudent fiscal management' even before DOGE. Among other things, DeSantis vowed to scrutinize spending by state universities and municipal and county governments — including on DEI initiatives — at a time when DeSantis is pushing to abolish the property taxes that predominantly fund local governments. Levy writes for the Associated Press. Follow Marc Levy on X at:
Chicago Tribune
28-06-2025
- Business
- Chicago Tribune
CPS lays off 161, eliminates 209 positions to plug budget hole
In a cost-cutting move to plug a $734 million shortfall, Chicago Public Schools officials on Friday said they laid off dozens of workers in its central office and citywide staff. In all, CPS laid off 161 employees, according to district officials. The cuts come after interim schools chief Macquline King told the Chicago Board of Education at a meeting Thursday that the district faces a budget deficit $201 million more than officials previously cited. Though the budget is typically released in June, district officials have yet to finalize a spending plan — or say how they plan to address the now $730 million shortfall. Before Thursday's meeting, the Chicago Teachers Union and SEIU Local 73, which represents public service workers in schools, held a news conference urging district officials to prevent additional cuts. Under the blazing sun, scores of parents, teachers, and school staff gathered holding signs and wearing union T-shirts. Among those impacted by the layoffs were 87 members of SEIU Local 73, among nearly all of whom were crossing guards, district officials said. Seven Chicago Teachers Union employees were also impacted. 'CPS children cannot afford to lose the care and resources union members have fought so hard to obtain since the pandemic,' SEIU Local 73 President Dian Palmer said in a news release Thursday. Officials also eliminated 209 open positions across the offices 'Chicago Public Schools remains committed to using every available dollar to support student learning and school communities, despite the district's ongoing and well-documented funding challenges,' district officials said in a statement. 'In continuing preparation of the Fiscal Year 2026 budget, CPS is taking a careful and strategic approach to reduce spending while minimizing the impact on classrooms.' Officials said that over the past several months, while under the leadership of previous CPS CEO Pedro Martinez, the district's talent team has been 'working closely with the Budget Office and department leaders to take a thoughtful look at how we operate.' Together, they've been 'identifying ways to be more efficient and find cost savings across our central offices and administrative functions,' officials said. Employees affected by the central office actions were notified Friday, officials said. Union partners were notified earlier this week. Officials said the district 'acknowledges the thoughtful and difficult work undertaken by teams across the organization to ensure these decisions have the least possible impact on students.' SEIU Local 73 in its release called on the city and the Chicago Board of Education to 'urgently explore other alternatives that will not directly harm these students' education.' Meanwhile, district officials stated the district remains 'focused on transparency and fiscal responsibility and will continue to work closely with city leaders, labor partners, and community stakeholders to address the long-standing structural underfunding of public education in Chicago,' adding that ensuring 'students receive the high-quality education they deserve remains the District's top priority.'
Hindustan Times
25-06-2025
- Business
- Hindustan Times
Siddaramaiah seeks ‘fair share' of central tax revenue
Chief minister Siddaramaiah on Tuesday met Union finance minister Nirmala Sitharaman in New Delhi and sought a fairer share of central tax revenues for the state under the 16th Finance Commission, arguing that the current formula disproportionately penalises states like Karnataka that contribute significantly to the national economy. Chief minister Siddaramiah meets Union finance minister Nirmala Sitharaman, in New Delhi on Tuesday. (ANI) During the meeting, the chief minister highlighted that Karnataka's share in tax devolution saw a sharp decline under the 15th Finance Commission, falling from 4.713% to 3.647% — a reduction of over 23%. This, he said, translated into an estimated cumulative loss of ₹ 80,000 crore over the award period, including the denial of special grants worth ₹ 11,495 crore. 'We have brought to the finance minister's attention that Karnataka has been unfairly impacted by the existing devolution formula, especially due to the over-reliance on the income-distance criterion, which carried a 45% weightage under the 15th Finance Commission,' Siddaramaiah said after the meeting. He urged the Union government to advocate for a more growth-oriented approach in its submission to the 16th Finance Commission. 'We have requested that the weightage for the income-distance criterion be reduced by 20 percentage points and reallocated to fiscal contribution, which reflects a state's share in the national GDP,' he said. The chief minister also objected to the current design of Revenue Deficit Grants, which he argued are misaligned with fiscal discipline objectives laid out under the Fiscal Responsibility and Budget Management (FRBM) framework. 'Revenue deficit grants, in their current form, contradict the spirit of fiscal discipline. We have suggested that the same amount — which was 1.92% of Gross Union Receipts under the 15th Finance Commission — be distributed among all states using the horizontal devolution formula,' Siddaramaiah said. He also flagged the unique developmental challenges faced by regions such as Bengaluru, Kalyana Karnataka, and Malenadu, stating that a fair devolution policy would help accelerate growth and bridge regional disparities. 'This is not a plea for special treatment. Karnataka's proposals are intended to strengthen national resource mobilisation and uphold the spirit of cooperative and competitive federalism,' he said. Siddaramaiah concluded by urging Sitharaman to incorporate Karnataka's proposals in the Union government's official memorandum to the 16th Finance Commission. 'A pro-growth devolution approach will empower every state to contribute meaningfully to India's development journey,' he said. The 16th Finance Commission, set up in December 2023 under the chairmanship of Arvind Panagariya, is expected to give its recommendations by October 31, 2025, which will be applicable for a five-year period beginning April 1, 2026. The 15th Finance Commission headed by N K Singh had suggested that states be given 41% of the divisible tax pool of the Centre for a five-year period from April 2021 to March 2026. With inputs from PTI
The Hindu
24-06-2025
- Politics
- The Hindu
The troubled waters of Godavari
A fresh row has erupted between Telangana and Andhra Pradesh over the Polavaram-Banakacherla Link Project. The project, which will divert 200 tmc ft of Godavari water to the Krishna and Penna basins, aims to provide drinking and irrigation water to the drought-hit Rayalaseema region of Andhra Pradesh. The Andhra Pradesh government has already submitted the pre-feasibility report on the project to the Central Water Commission (CWC). The CWC has now asked the State to now furnish a detailed project report (DPR). In addition, the Centre has offered to fund 50% of the total cost of the project, which is an estimated ₹80,000 crore, as part of the interlinking of rivers; the remaining will be financed through borrowing beyond the Fiscal Responsibility and Budget Management (FRBM) limits. This has upset Telangana as the Centre had reduced the State's borrowing limits under the FRBM Act citing the State's off-budget borrowings to complete the Kaleshwaram project on time. Both the Congress, which is in power in Telangana, and the Bharat Rashtra Samithi (BRS), which is in the Opposition, believe that the project violates the State's riparian rights regarding Godavari waters as well as the provisions of Andhra Pradesh Reorganisation Act, 2014. But the two parties are also busy blaming each other for 'allowing' Andhra Pradesh to plan the project. The other significant Opposition party in the State — the Bharatiya Janata Party (BJP) — has remained largely silent. This is possibly because the BJP government at the Centre has the support of the Telugu Desam Party, the ruling party of Andhra Pradesh. This, the Telangana government believes, has given the Andhra Pradesh government the advantage of getting things done with quick approvals from the Centre. Chief Minister A. Revanth Reddy and Minister for Irrigation N. Uttam Kumar Reddy squarely blamed the previous BRS government for Andhra Pradesh's decision to take up the Godavari diversion project. They cited the first apex council meeting of September 21, 2016, as evidence. That was when the then Chief Minister, K. Chandrasekhar Rao, had stated that 3,000 tmc ft of Godavari water discharges into the sea on average annually and could instead be utilised if there was an 'understanding' between the two States. The BRS objected to this argument saying Mr. Rao had also 'raised objections over the diversion of water from the Godavari to the Krishna without prior consultation of Telangana' during the same apex council meeting. Former Minister for Irrigation, T. Harish Rao, said that the Congress is deliberately misleading the people. He alleged that Andhra Pradesh was conspiring to divert Godavari waters to claim rights on it in the future by seeking re-allocation of water by the Godavari Water Disputes Tribunal. He termed the Congress government's 'soft approach' to the project as a 'mortgaging of Telangana's water rights' and said that this was 'Mr. Revanth Reddy's 'gurudakshina' to his political mentor N. Chandrababu Naidu'. Mr. Rao said that just as the late Y.S. Rajasekhara Reddy had diverted Krishna waters from Srisailam to the non-basin (Penna) areas by expanding the Pothireddypadu Head Regulator, now Andhra Pradesh Chief Minister Chandrababu Naidu was diverting Godavari waters at the cost of Telangana's riparian rights. Mr. Naidu emphasised that the project is essential. Arguing that the Godavari has ample surplus water, he asked why Telangana should object to the use of water that was anyway flowing into the sea. The BRS in turn demanded to know why the Andhra Pradesh government had objected to the Kaleshwaram project if ample water was indeed available in the Godavari. The President of the Telangana Retired Engineers' Association, M. Shyamprasad Reddy, suggested that the Centre carry out the appraisal of the Polavaram-Banakacherla Link Project only after protecting the rights of the people of Telangana by giving permissions/clearances/approvals to all the ongoing and contemplated projects in the Godavari basin. The former chief engineer also suggested that the Centre additionally allocate more than 200 tmc ft of water in the Krishna basin in lieu of the diversion of Godavari water to other basins. Water-sharing is a sensitive issue and is linked to the economy and regional sentiments. The Centre would do well to be as unbiased as possible when dealing with inter-State water disputes.
