DEA presentation flags rising market borrowings by statesNEW DELHI: Government on Thursday told a parliamentary panel that global headwinds are exerting pressure on overall fiscal management, but it remained committed to balancing developmental needs with fiscal prudence.The comments came amid soaring fertiliser and fuel bill due to the west Asia crisis. Subsidies will push up expenditure, especially revenue spend. During a presentation to the standing committee on finance headed by BJP MP Bhartruhari Mahtab, the department of economic affairs noted that committed and sticky revenue expenditure, such as salary, subsidies and interest payments, of the Centre and states leave limited scope for productive investments.While noting that stagnant capex levels may impact future growth prospects, govt underlined the need to invest in infrastructure and other asset creating initiatives.There was also a worry about the rising market borrowings by the states with gross borrowings jumping 83% from around Rs 7 lakh crore in 2021-22 to Rs 12.8 lakh crore last year. States are financing almost 76% of their fiscal deficit through market borrowings, govt data showed.Besides, with spread between central and state govt securities widening, debt servicing costs are also going up, officials are leant to have told the panel.The presentation, which was on the review of long-term public finance and debt at the Centre and states, said govt's endeavour is to stay on a steadily declining path of debt.Higher market borrowings, by both Centre and the states, coupled with a lower domestic savings rate, can result in upward pressure on interest rates, the finance ministry warned, according to people aware of the discussions.Govt officials reiterated that the Centre was committed to maintaining the fiscal guide path and asserted that it will continue to balance developmental needs with fiscal prudence.They highlighted how India was among a select group of countries, along with Australia, Canada and Germany, to have seen debt consolidation post Covid-19.