States must back human capital over cash: Economic Survey
Published on: Jan. 30, 2026, 1:17 a.m. | Source: The Economic Times
State governments' cash transfer schemes are straining finances and impacting growth. These popular programs are costing ₹1.7 lakh crore this fiscal year. Fiscal indiscipline by states could increase borrowing costs for the nation. The Economic Survey urges states to prioritize capital and human capital investment over open-ended cash support. This trend raises concerns about fiscal sustainability and future growth prospects.
