State government’s expenditure pattern displays a distinct back-loaded concentration, which surges in February and March, when departments expedite project execution, an article on government finances in RBI’s November Bulletin noted. This bunching up is the result of flow of funds from schemes under grants and departments clearing pending bills at the last minute to avoid lapse of funds. The sharp spike in spending in these final months, especially in capital expenditure, intensifies liquidity pressures, often compelling states to rely on short-term borrowing.