Economics · Indian Economy
Under fiscal restructuring programmes in India, why have state governments been permitted to borrow directly from multilateral financial institutions like the World Bank and Asian Development Bank (ADB)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To invest directly in foreign equity markets and sovereign wealth funds
- 2To finance day-to-day salary payments of state government employees
- 3To completely bypass the regulatory oversight of the Central Government
- 4To substitute high-cost domestic debt with low-cost international funds✓
Correct answer
To substitute high-cost domestic debt with low-cost international funds
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