Financial Restructuring at State Level K Madhava Rao Duvvuri Subbarao The states have a large share of the responsibility to protect the poor during the structural transition, on account of the economic and social services they are mandated to provide. But their ability to meet this responsibility is deeply threatened by the rapid deterioration of their already fragile financial situation. Therefore, if the issue of financial restructuring at the state governments' level is not addressed head on, there is danger of the entire reform process getting derailed.
