India, June 27 -- The state finance department has expressed concern over rising liabilities and has stated that the government will have to reduce its revenue expenditure and rationalise its schemes. It has asked the public works department (PWD) to prioritise infrastructure projects, as financial resources need to be used judiciously.

The department has suggested that megaprojects be undertaken on a build, operate and transfer (BOT) basis, which entails private players doing the build and operate part so that the exchequer is not burdened. This stems from the fact that the state has given guarantees of Rs.51.44 lakh crore against contingent liabilities till 2024-25 and is spending 22 percent of its total generated revenue for repayment...