<h1>Sub national debt sustainability requires improved cash management, expenditure compression and intergovernmental coordination to address borrowing and inflation risks.</h1> Reserve Bank's conference addressed State fiscal challenges from larger market borrowings, inflation risks and banks' excess SLR, urging States to improve cash management, fiscal information dissemination and expenditure compression. RBI will study sub national debt sustainability. States were tasked with removing supply constraints to manage inflation, coordinating surveillance on financial inclusion and illicit deposit schemes, and implementing operational measures including borrowing projections, cash flow forecasting, strengthening of Consolidated Sinking Fund/Guarantee Redemption Fund and migration of receipts/payments to electronic mode.