Thin ice: States are drowning in debt and politics keeps adding weight

Cash transfers to women need a wider debate

PRS Legislative Research has published a comprehensive report on state-government finances. Even though state governments account for about two-thirds of general government expenditure, their finances do not receive adequate attention in public debate. Reports like these, therefore, fill a crucial gap in the general understanding of state-government finances. Expectedly, the study underscores several fault lines worth discussing here. It shows, for instance, in 2023-24, states spent over 60 per cent of their revenue receipts on heads such as salaries, pensions, subsidies, and interest payments. In the aggregate, states also ran a revenue deficit worth 0.4 per cent of gross state