State Finances

Improving fiscal credibility: States need a transparent reporting framework

The RBI has argued that fiscal-responsibility laws should evolve from merely monitoring deficit numbers to assessing broader fiscal risks

States' deficits run deeper than their Budgets, show CAG reports

CAG audits reveal that several Indian states understated their fiscal gaps in 2024-25 due to accounting practices, off-budget borrowings, and unrecorded liabilities

State capex utilisation eases in Q1FY27, remains mid-range over six years

States utilised 10.67 per cent of their FY27 capital expenditure budget in the first quarter, lower than a year ago, although absolute spending touched a six-year high

Odisha, Goa, Jharkhand top NITI Aayog's Fiscal Health Index for FY24

States now account for nearly a third of India's total government debt, says a NITI Aayog report, urging them to follow fiscal deficit norms

States are borrowing just to get by, not to build productive assets

Even prosperous southern states used a large part of FY25 debt for operational expenses

Tax collections slow down, pinching Centre and states' finances alike

States' own tax revenue now exceeds half of revenue receipts, but falling tax buoyancy suggests collections are not keeping pace with economic growth

Best of BS Opinion: States must reduce debt in face of redemption pressures

From mounting state debt and agricultural research to public asset monetisation, China-linked investment and Tim Berners-Lee's vision for reclaiming the open web

State stats: Handouts, pension scheme fuel state revenue deficit worries

High revenue deficit tells us that the governments borrow from the markets just to meet their current expenditure and do not generate assets

From splurge to squeeze: Women's cash schemes face fiscal reality

Widening deficits force states to rationalise and cut back outlays, reduce beneficiaries

States' fiscal realities vary widely as debt, revenue and capex diverge

Revenue gaps and structural spending imbalances weigh on their finances, squeezing crucial infrastructure growth

Social welfare spending is improving quality of lives across states

Devolved funds and tailored welfare schemes empower grassroots development, lifting poor families and driving rural equality

State priorities split as outlays surge, spending patterns diverge

West Bengal led social welfare and nutrition outlay at 14.86 per cent of its budget

Rich states pull ahead in tax self-reliance; Haryana tops, Bihar trails

Regions trailing in own tax revenue remain heavily dependent on central funds as the fiscal divide widens

States' fiscal math in the age of 'freebies': Stable, but strains remain

While aggregate finances remain stable, high debt and welfare handouts weigh on some budgets

16th FC breaks with precedent, leaves out statewise GSDP projections

Unlike its three predecessors, the Sixteenth Finance Commission has not published state-wise GSDP projections for 2026-31, citing the absence of revenue deficit grants

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