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Sanjay Malhotra, as the RBI Governor, has emphasized the importance of fiscal discipline and implementing a borrowing calendar for state bonds. This move is expected to bring more transparency and predictability to the bond market, allowing investors to make more informed decisions. By introducing a borrowing calendar, state governments will be required to announce their borrowing plans in advance, which can help reduce market volatility and minimize the impact of sudden and large borrowing requests on interest rates. This, in turn, can lead to more stable and lower borrowing costs for state governments. Fiscal discipline is also crucial in maintaining the health of the economy. By exercising restraint in spending and borrowing, state governments can avoid over-indebtedness and reduce the risk of fiscal distress. This can also help maintain investor confidence and attract more investment into the state bond market. The RBI Governor’s advocacy for fiscal discipline and a borrowing calendar for state bonds is a step in the right direction, as it promotes transparency, stability, and responsible fiscal management. It will be interesting to see how state governments respond to this initiative and whether it leads to more efficient and effective management of their debt obligations. What are your thoughts on this development? Do you think the introduction of a borrowing calendar and emphasis on fiscal discipline will have a positive impact on the state bond market?