Fiscal indiscipline of states to have an impact on sovereign borrowing costs: CEA Anantha Nageswaran

States' spending on populist doles is raising concerns. The Economic Survey warns this fiscal indiscipline will increase borrowing costs for the nation. While the Centre has managed its finances, rising state deficits and cash transfers pose risks. This impacts investor confidence in general government finances. The long-term economic costs of such transfers may also be significant.