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States do Centre a good turn

A sharp reduction in states' deficit augurs well for the Centre's fiscal planning

Illustration: Binay Sinha
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Illustration: Binay Sinha

A K Bhattacharya
Until about 10 years ago, the Centre’s Budget size would be more than the combined expenditure of all the states. That changed in 2012-13. The states’ Budget size in 2012-13 rose to Rs 14.55 trillion, which for the first time was a little higher than that of the Centre’s at Rs 14.1 trillion.

Since then, the states’ share in total government expenditure in the country began rising steadily, and by 2019-20 it was as much as 55 per cent. The Covid pandemic led to a sharp rise in the Centre’s Budget size and changed that equation, but only for a
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First Published: Jan 24 2023 | 10:37 PM IST

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