First, the progressive enactment of Fiscal Responsibility Legislations (FRLs) by as many as 26 State governments has indeed strengthened the fiscal consolidation initiatives at the State level.
Furthermore, unlike private borrowers, sovereigns usually can choose whether or not to honour their debts, so that the issue is not really insolvency in the strict sense (i.e. inability to repay) as unwillingness to repay owing to exceedingly high social or political costs, which are even less straightforward to judge and to measure. Still, this issue cannot be avoided.