Page 2 - State Fiscal Deficits

Pension bills of states cut into municipal budget in the time of Covid

An RBI analysis showed that during the second wave, 22% of municipalities reported revenue loss of an alarming 50% and more

The state of states

India's fiscal challenge can get worse if states spend more even with lower revenue growth

States' fiscal balances stay weaker than pre-Covid levels in Q1 FY2022

The pandemic continues to affect state finances with first quarter revenue and expenditure numbers pointing out that a full economic recovery is still a long road ahead.

Indian states need more financial support from the government: S&P

The Covid-19 pandemic could increase budget deficits and indebtedness of state governments as spending needs to exceed revenue collected, S&P Global analysts YeeFarn Phua and Ruchika Malhotra said

Poll-bound states spend heavily this year amid ambitious Budget projections

But their Budget numbers are inclined to be overstated due to substantial revisions in revenues and grants shared by the Centre

States' fiscal deficit to narrow to 4.3% of GDP in FY22: Ind-Ra

The agency's earlier forecast for FY21 was 4.5 per cent. The revision was made due to a sharper-than-expected contraction of 6.1 per cent in the nominal GDP

States' fiscal deficit to narrow to 4.3% of GDP in fiscal 2022: Report

The aggregate fiscal deficit of states is likely to be at 4.3 per cent of the GDP in 2021-22 compared to 4.6 per cent in 2020-21, says a report by India Ratings and Research

Statsguru: Rough terrain for states amid slowing economy hit by Covid-19

In FY20, provisional accounts indicate that states' revenue receipts were 12 per cent lower than the Budgeted amount

Fiscal deficit of 18 states at 40.7% in Q1, revenue deficit at 285%: Ind-Ra

Steeply falling revenues and central grants amidst rising expenditure to fight Covid-19 led to 18 of the largest states reporting a collective revenue deficit of 285% of Budget Estimates in April-June

States forced to pay higher spread as oversupply concerns take hold

The rise in spreads is a direct measure of market displeasure than a rise in yields. This is because if spreads widen, SDL yields could still rise even when G-sec yields remain where they are

13 states submit borrowing option to Centre to fund GST shortfall

These 13 states include Bihar, Odisha, Andhra Pradesh, Gujarat, Uttarakhand and Meghalaya

In absence of GST compensation, states may cut FY21 capex by Rs 3 trn: ICRA

The borrowing alternative offered by the Centre to make up for the shortfall in the promised compensation will lead to the states' fiscal deficits widening to 4.25 - 5.52 per cent

States' fiscal deficit likely to hit 4.2-5.5% of GSDP this fiscal year

This may take the general deficit of the country-- both the Centre's and states'-- to 11-14 per cent of GDP in FY21

States' market borrowing set to get costlier; SDL yields rise 24 bps

Yields on the three-year SDLs have jumped 35 bps to 5.09 per cent this month

Ratio of India's public debt to GDP likely to scale a new high in FY21

According to the Reserve Bank of India (RBI) data, the combined liabilities of the Centre and the state governments were around Rs 147 trillion at the end of March 2020

States' fiscal deficit to rise to 4.5% of GSDP in FY21: Ind-Ra

The 20 states considered in the analysis constituted nearly 86 per cent of the budgeted aggregate revenue receipts for FY20.

I've to be careful, am answerable to Parliament: FM Nirmala Sitharaman

Nirmala Sitharaman tells Indivjal Dhasmana & Nivedita Mookerji that the government has made sure that mistakes committed during 2008-2013 are not repeated while announcing the Rs 20-trillion package.

Covid-19 impact: State govts likely to raise more money using bonds

According to the Reserve Bank of India (RBI) data, state governments' gross market borrowings stood at Rs 6.08 trillion in 2019-20, up from Rs 4.78 trillion in 2018-19.

Bengal to Rajasthan: It's crunch time for states' finances as economy slows

Outstanding debt of states has risen over the last five years to 25% of GDP, posing medium-term challenges to its sustainability.