The Reserve Bank of India hosted the 36th Conference of State Finance Secretaries on October 27, 2026, in Mumbai. This key gathering focused on strengthening state fiscal management across India. Finance Secretaries from 27 states and three Union Territories attended the event. Senior officials from the Ministry of Finance, the Controller General of Accounts, and the CAG also participated.
Key Highlights of the State Fiscal Management Conference
RBI Governor inaugurated the conference and addressed all participants directly. He stressed the importance of maintaining quality public expenditure for long-term fiscal health. Additionally, he urged states to adopt prudent borrowing strategies and efficient cash management practices. These steps, he noted, are critical for sustainable state finances.
The Governor also encouraged states to onboard the Unified Lending Interface (ULI). Furthermore, he recommended using Programmable Central Bank Digital Currency (P-CBDC) for Direct Benefit Transfers. He advised states to actively use the State Level Bankers’ Committee (SLBC) forum as well. As a result, states could improve both financial delivery and governance outcomes.
During the conference, the Governor released a booklet titled Compendium on Cash and Debt Management for State Governments. This publication summarises key concepts, operational processes, and best practices in a clear format. Therefore, state officials now have a practical reference guide for better fiscal planning.
What This Means for State Governments and Borrowing Strategy
The conference reviewed market borrowings by state governments in detail. Participants also discussed short-term financial accommodation provided by the RBI to states. Meanwhile, the adoption of a Benchmark Issuance Strategy by states was a key agenda item. These discussions aim to bring greater discipline and transparency to state-level debt management.
However, fiscal sustainability remains a shared challenge for many Indian states. The RBI’s push for smarter cash and debt tools reflects this growing concern. Better expenditure quality and digital finance adoption can together strengthen state finances significantly. For example, using P-CBDC for DBT could reduce leakages and improve delivery speed.
This annual conference remains one of the most important platforms for centre-state fiscal coordination in India. Additionally, it gives the RBI a direct channel to guide state finance officials on emerging tools and policies.
Source: RBI Press Releases
