State Finances

California budget deal proposes new tax on digital software sales

The spending plan for the fiscal year that begins July 1 is Newsom's last as governor and comes as state finances are buoyed by an artificial intelligence boom fueled by home-state companies

20 states utilised just 5.86% of combined budgeted capex in April-May

Twenty states utilised 5.86 per cent of their FY27 capex budgets in April-May, below the year-ago pace, though spending recovered in May after a sluggish April

Best of BS Opinion: Weather risks, state finances and Trump's economics

Today's opinions examine monsoon uncertainty, RBI's NBFC framework, worsening state finances, Donald Trump's economic approach and the future of modern feminism

Under strain, state finances in Kerala and TN need a new fiscal compact

On the utilisation of available resources, stress in state finances can be reflected in the extent to which states are utilising their fiscal deficit to finance the revenue deficit

Welfare bills, rising commitments drag 4 states from surplus to deficit

Karnataka, Telangana, Chhattisgarh, and Bihar saw revenue balances weaken between FY23 and FY25 as spending outpaced receipts: CAG

Tamil Nadu debt nearly doubles to ₹10 trillion in five years: White paper

The TVK government's white paper said Tamil Nadu added Rs 4.87 trillion in debt over five years, while total liabilities, including guarantees and off-budget borrowings, reached Rs 13.8 trillion

18 states overshot fiscal deficit ceiling in FY25, shows CAG report

The CAG's review of state finances showed 18 states exceeded the 3 per cent fiscal deficit ceiling in FY25, while combined state liabilities continued to rise over the decade

Real cost of freebies is the erosion in quality of public spending

State debt and deficits do not capture the damage that doles inflict on the quality of public spending

States' reliance on RBI's SDF rises in FY26 as WMA, overdraft usage falls

ICRA says states increased use of the RBI's Special Drawing Facility in FY26, while reliance on Ways and Means Advances and overdraft facilities fell to five-year lows

Best of BS Opinion: Centre, states face strong fiscal headwinds

From Bharti Airtel's succession planning and AI-driven cyber risks to the economic fallout of the West Asia conflict and India's investment needs - here are today's top opinion pieces

Cash-transfer promises rise, but can states afford the welfare bill?

As cash-transfer politics becomes embedded in elections, the bigger challenge for states may lie not in announcing welfare promises, but in sustaining them fiscally

Statsguru: Big welfare promises confront strained state economies

Welfare promises dominate politics even as several states face rising fiscal stress and uneven economic capacity

India's cash transfer boom is a new safety net for millions: CRISIL

Crisil says expanding cash transfer schemes are supporting low-income households, but rising state borrowing and fiscal pressures could challenge their long-term sustainability

CAG pulls up Odisha govt for PSU dues, flags poor budget utilisation

Audit flags over Rs 5,000 crore unpaid PSU dividends and weak budget utilisation, raising concerns over fiscal oversight and revenue mobilisation in Odisha

Finance Commission changes pose transition risks for states' fiscal balance

The 16th Finance Commission throws up a transition challenge for states facing strict fiscal limits

Tracking the shift: Urban local govts see a 230% rise in grant allocations

While the 16th FC has set a new record in allotting funds for ULGs, its counterparts in states continue to struggle. Archis Mohan writes

Unspent ₹43,636 cr lies in states' SNA accounts despite higher allocations

More than Rs 43,000 crore remains unutilised in states' SNA accounts under major centrally sponsored schemes, even as Budget sharply raises allocations for education, water and nutrition programmes

Two decades of FRLs fail to rein in debt in several states: World Bank

A World Bank report to the 16th Finance Commission says state fiscal rules improved headline deficits, but debt levels remain high and uneven across several large states

Scrapping revenue deficit grants may strain fragile states: Economists

Economists warn that removal of revenue deficit grants could hurt fiscally weak and hill states, forcing them to seek alternative support from the Centre

Budget 2026: Oppn slams Budget for 'failing' the test of economic strategy

Opposition parties, including ruling dispensations in poll-bound West Bengal, Kerala, Tamil Nadu, said the Budget fails on economic strategy, worsens fiscal stress on states, and undermines federalism