Decadal perspective of Modi govt: State finances recovering from pandemic

Challenges

The shortfall in government earnings relative to their expenditure rose during the pandemic and many states are yet to completely recover.

Some states are opting to revert to an older pension system which experts believe can worsen state finances in the long-term. 

Takeaways

Scheme of fifty-year interest free loan for capital expenditure to continue with total outlay of Rs 1.3 trillion

State Goods and Services Tax (SGST) revenue, including compensation released to states, has shown improvement

 Challenges for state budgets