Focus will be on managing debt levels & fiscal consolidation: FM Nirmala Sitharaman

Debt Management and Fiscal Responsibility - The government aims to manage debt levels and focus on fiscal consolidation in the upcoming financial year, urging states to control their borrowing due to rising debt-to-GDP ratios [7] - The Centre anticipates that general government debt will decrease to 56.1% of GDP in the current financial year, down from over 60% post-Covid [2][7] State Financial Accountability - Finance Minister Sitharaman emphasized the need for greater accountability and transparency in state finances, stating that states must follow the Centre's lead in reducing debt levels [2][7] - She warned that if states do not manage their debt-to-GSDP within the Fiscal Responsibility and Budget Management (FRBM) limits, they will end up borrowing to service existing loans rather than for developmental purposes [4][5][7] Economic Growth Drivers - The services sector contributes 60% to GDP, but there is a call for the manufacturing sector to accelerate through innovation, as private participation in research and development in India is only 36%, compared to nearly 70% globally [5][7] - The government plans to support entrepreneurship across the country rather than limiting manufacturing growth to special economic zones, aiming to enhance India's share in global trade [6][7]