Fiscal deficit worry for states

5 states that have presented their financial status till date indicate encouraging news in capex

Much of economic commentary in India tends to focus disproportionately on the Union Budget. With state governments accounting for 57 per cent, at the latest, of total general government expenditure, it is imperative to analyse state Budgets in more detail. 

A Business Standard analysis of five recently presented ones — West Bengal, Bihar, Odisha, Jammu & Kashmir and Assam — for 2017-18, throws up four interesting trends, assuming these are representative.

First, capital expenditure by states is likely to continue to grow robustly in FY18. Most have budgeted for a rise in the share of capex in total spending. 

Second,