State Finances

Audit flags over Rs 5,000 crore unpaid PSU dividends and weak budget utilisation, raising concerns over fiscal oversight and revenue mobilisation in Odisha

The 16th Finance Commission throws up a transition challenge for states facing strict fiscal limits

While the 16th FC has set a new record in allotting funds for ULGs, its counterparts in states continue to struggle. Archis Mohan writes

More than Rs 43,000 crore remains unutilised in states' SNA accounts under major centrally sponsored schemes, even as Budget sharply raises allocations for education, water and nutrition programmes

A World Bank report to the 16th Finance Commission says state fiscal rules improved headline deficits, but debt levels remain high and uneven across several large states

Economists warn that removal of revenue deficit grants could hurt fiscally weak and hill states, forcing them to seek alternative support from the Centre

Opposition parties, including ruling dispensations in poll-bound West Bengal, Kerala, Tamil Nadu, said the Budget fails on economic strategy, worsens fiscal stress on states, and undermines federalism

CAG data show states spent just 45.8% of their FY26 capital outlay in the first nine months, sharply lagging the Centre's capex performance

Economic Survey warns that rising state-level freebies and revenue deficits could raise India's borrowing costs by crowding out capex and weakening fiscal discipline

Nationally, the working-age population is expected to peak around 2031, but several states have already crossed that point

An optimal state policy must go beyond a revenue-hungry, punitive regulatory regime

As the Centre reviews hundreds of schemes, the push to rationalise spending could reshape fiscal federalism, ease pressure on states, and improve the efficiency of public expenditure

Weak tax collections in October pushed Bihar's fiscal deficit to three times the FY26 budget estimate in seven months, with pre-poll spending adding pressure

Cash transfers to women need a wider debate

Cities are crumbling, but the local bodies that govern them remain powerless

CAG report shows pensions overtook interest costs in FY23 as states spent 43% of revenue on committed expenditure, including salaries, pensions, and debt servicing

Bank and financial institution support for projects stayed high in FY25, with Gujarat, Maharashtra, and Uttar Pradesh among the top states driving nearly 60 per cent of total project costs

The data suggests that of all states and Union Territories, 12 had their debt-to-GSDP ratio higher than 35 per cent in 2023-24, while around 24 had their debt above 20 per cent

The NITI NCAER States Economic Forum portal aims to enhance data accessibility and provide valuable insights into India's economic landscape at the state level

Rising costs, especially due to women's welfare schemes are straining state finances, forcing governments to cut spending, reassess policies, and even drop some existing schemes