India's neighbors sri lanka and pakistan are embroiled in a severe financial crisis and are on the verge of bankruptcy. The Union government has urged the Chief Secretaries of all the states to keep an eye on the growing debt burden and fiscal deficit as the activities of each state in india will have a major impact on the country's economy.The central government has issued this announcement as India's neighbors pakistan and sri lanka are facing an economic crisis as there are several large states in india parallel to Sri Lanka. The government has also decided to take immediate action to address the growing concerns about the financial health of the states. This is the first announcement that work will begin soon.At an important meeting in Dharamsala last week, the chief secretaries of all the states released a statement on the state's financial position. This gives information on which state the central government owes the most to. It seems that the federal government has decided to take appropriate action before it goes out of hand.Prime minister Narendra Modi talks about the populist plans and freebies announced by political parties at election time at a meeting attended by several top government officials in April. He warned that if the trend is not curbed, some states will go the route of deficit-ridden sri lanka or Greece.