Why Some Indian States Are Facing Temporary Cash Flow Mismatches

Recent meetings of the GST Council have seen some states complaining about a shortfall in revenues. Some of these states have also indicated that they will borrow more from the market in the first three months of the financial year. Is this a reflection of states managing their finances poorly? Maybe not. The blame, in this case, may lie more with the centre than the states. A change in the timeli…