Rbi Warns States On Revenue Slippages

The fiscal position of the states deteriorated sharply in 2001-02, after improving in the previous year, the Reserve Bank of India (RBI) pointed out in a report on state finances.

The gross fiscal deficit of the states rose to Rs 1,06,549 crore, or 4.6 per cent of the gross domestic product (GDP), up from the Budget estimates of Rs 95,087 crore, or 3.8 per cent of GDP.

The central bank attributed the deterioration to the shortfall in the revenue receipts. The economic slowdown has affected tax revenues of the states and thus their share of central taxes.