Page 2 - State Finances

States utilise less than half of FY26 capex budget in Apr-Dec period

CAG data show states spent just 45.8% of their FY26 capital outlay in the first nine months, sharply lagging the Centre's capex performance

Economic Survey: Unconditional cash transfers a risk to states' borrowing

Economic Survey warns that rising state-level freebies and revenue deficits could raise India's borrowing costs by crowding out capex and weakening fiscal discipline

Demographic shift: State finances reflect the rapid transition ahead

Nationally, the working-age population is expected to peak around 2031, but several states have already crossed that point

States' excise policy must optimise revenue, adopt clearer regulation

An optimal state policy must go beyond a revenue-hungry, punitive regulatory regime

Expenditure review: Development needs a wider role of state govts

As the Centre reviews hundreds of schemes, the push to rationalise spending could reshape fiscal federalism, ease pressure on states, and improve the efficiency of public expenditure

Datanomics: Resource crunch remains major concern in Bihar's finances

Weak tax collections in October pushed Bihar's fiscal deficit to three times the FY26 budget estimate in seven months, with pre-poll spending adding pressure

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

Cash transfers to women need a wider debate

India's urban crisis deepens as states choke city-level governance

Cities are crumbling, but the local bodies that govern them remain powerless

StatsGuru: States' pension burden overtook interest payments in 2022-23

CAG report shows pensions overtook interest costs in FY23 as states spent 43% of revenue on committed expenditure, including salaries, pensions, and debt servicing

Gujarat stays top state for bank-backed investments; Maharashtra second

Bank and financial institution support for projects stayed high in FY25, with Gujarat, Maharashtra, and Uttar Pradesh among the top states driving nearly 60 per cent of total project costs

States must fix their own economies, address deeper structural cracks

The data suggests that of all states and Union Territories, 12 had their debt-to-GSDP ratio higher than 35 per cent in 2023-24, while around 24 had their debt above 20 per cent

FM Sitharaman to launch NITI-NCAER portal on state finances on April 1

The NITI NCAER States Economic Forum portal aims to enhance data accessibility and provide valuable insights into India's economic landscape at the state level

Rising welfare costs push states to trim budgets, rethink policies

Rising costs, especially due to women's welfare schemes are straining state finances, forcing governments to cut spending, reassess policies, and even drop some existing schemes

Govt to initiate action to realise Rs 1.36 trn pending dues: J'khand FM

The Jharkhand government will initiate legal action to realise its "Rs 1.36 lakh crore dues" pending with the Centre, Finance Minister Radhakrishna Kishore informed the assembly on Monday. Kishore made the assertion while presenting the state budget of Rs 1.45 lakh crore in the House. Earlier, during Question Hour, Excise Minister Yogendra Prasad, however, said that a joint committee has been formed comprising representatives of the Centre and the state to evaluate the exact outstanding amount. The state government has been claiming for several years that the Centre owes Rs 1.36 lakh crore to the state in lieu of coal mined by entities such as Coal India Ltd. "A joint committee of the Centre and the state has been formed on March 1 this year. The panel will assess the state's claim of Rs 1.36 lakh crore coal dues and verify the outstanding in every head. We will realise the amount as per the committee report," Prasad said in the assembly in reply to a query. The government's reply

We tried to close door that caused corruption: Himachal Pradesh CM Sukhu

The Himachal Pradesh government raised milk procurement prices from Rs 38 to Rs 45 and that of buffalo milk from Rs 38 to Rs 55 per litre this April

Widening cracks in state finances: Revenue deficits risk fiscal stability

These state-specific fiscal vulnerabilities need appropriate policy considerations to enable sustainable fiscal recovery and innovative ways to augment the revenue space

Critics frown at freebies by Mahayuti but states' finances remain robust

Mahayuti govt faces scrutiny as schemes like Mukhyamantri Majhi Ladki Bahin Yojana strain fiscal resources amid rising unemployment and prices of food items

Never asked to close madrassas, Muslim children should get education: NCPCR

NCPCR chairperson Priyank Kanoongo said he never called for the closure of madrassas but recommended state funding to these institutions be stopped as they are depriving poor Muslim children of education. He said that Muslim children from improverished backgrounds are often pressured into religious schooling over secular education. We advocate for equitable educational opportunities for all children. In a recent report, the apex child rights body, the National Commission for Protection of Child Rights (NCPCR) raised serious concerns about the state of functioning in madrassas and called for stopping the state funding unless they comply with the Right to Education Act. Responding to the functioning of the madrassas, Kanoongo criticised certain groups within the country for "fearing" the empowerment of the poor Muslim community. "There exists a faction in our nation that dreads the empowerment of Muslims. Their fear stems from the anticipation that empowered communities will demand .

CAG shines a light on state govts' expenses, asks officials for clarity

The CAG last week raised concerns over unclassified expenditures, questioning state finance secretaries over 'hidden' funds marked for various handouts

Nitin Gadkari wants states to pitch for GST cut on flex-fuel vehicles

Share of biofuel will be 50% of fossil fuels in five years, says minister