It is important for NES to improve the quality of their expenditure with greater emphasis on capital expenditure for sustaining the fiscal consolidation process. There is also a need for NES to improve their own tax revenue. Financial indicators The formal financial system in India is dominated by banks. NES, however, lag behind other parts of India in terms of development of banking.
Possible paths to be explored might include: the establishment of special insolvency proceedings, with recourse to administrative options, attributing some of the instruments currently envisaged in the BRRD for banks in resolution to a liquidating authority, as an alternative to the ‘atomistic’ court-led liquidation regime. (The liquidating authority and the funding sources available would need to be identified.)