An insight into the steady decline of states' spending from FY17 to FY20

In FY20, the difference between the Budgeted provision and actual amount spent rose to Rs 4 trillion, about 13 per cent of total expenditure of states

Indian states became central to the discussion on public spending in India from 2015-16, when the then new Bharatiya Janata Party government accepted 14th Finance Commission’s recommendation to increase states’ share in central taxes from 32 per cent to 42 per cent. Major taxes such as income tax, Goods and Services Tax, excise duties, are collected by the Centre, but belong to both the Centre and the states. States made a lot from this deal, their revenues rose, and so did their spending: both on social schemes and on capital assets such as roads and health infrastructure. 

But the previous