SBI warns against freebies, says have huge fiscal costs

The report also flagged the off-budget borrowings of states, which are loans raised by state-owned entities and guaranteed by the states, to have reached around 4.5% of GDP in 2022. "If we look at the state budgets, election promises recently made for forthcoming state elections range from 0.1-2.7% of GSDP (gross state domestic product) for different states and around 5-10% of own tax revenue of the states," the report said.

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