<ul><li>State sops announced in the current financial year's budget may divert resources away from critical social and economic infrastructure development, according to the RBI's December bulletin.</li><li>The RBI staff paper highlights sops such as free electricity, free transport, allowances to unemployed youth, and monetary assistance to women, suggesting the need for review.</li><li>Rationalization of centrally sponsored schemes is recommended by the RBI to make room for more productive expenditure.</li><li>The bulletin emphasizes the importance of freeing up resources for increased investment in health, education, agriculture, research and development, and rural infrastructure.</li></ul>

RBI Bulletin: FY25 State Sops To Divert Resources From Social, Economic Development

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