Page 2 - State Revenues

Twelve of 31 states, UTs project debt more than 35% of GSDP at FY24 end

It is not that only the poor states such as Bihar have high debt in proportion to their GSDP

States to miss capex targets this fiscal on fall in revenue, polls : Report

Several states are likely to miss their capital expenditure targets for the ongoing fiscal due to polls and fall in revenue, according to an analysis. A steep fall in revenue receipts will further lead to a major compression in state capex, which during the first half of FY24 rose to a record 35 per cent, Icra Ratings Chief Economist Aditi Nayar said. To maintain their Budget estimates, 21 states -- whose capex and other macro data is available -- will have to ensure that the capex run run rate is maintained at 28 per cent in the second half, which is unlikely, since model code of conduct is likely to take effect in the March quarter before the general elections, Nayar said. The combined revenue and fiscal deficits of these 21 states widened to Rs 70,000 crore and Rs 3.5 lakh crore, respectively, in the April-September period, from Rs 50,000 crore and Rs 2.4 lakh crore, respectively, in the year-ago period. The report excludes Arunachal Pradesh, Assam, Goa, Manipur, Meghalaya, ...

Populism: The only game in town

As political parties indulge in competitive populism, why do voters accept it?

Centre proposes amendment to boost state revenue from mining waste

The existing regulation permitted the leaseholder to dispose of these materials without specifying their intended use

Ongoing ethnic violence takes a heavy toll on economy of Manipur

The retail inflation in Manipur remained one of the highest in the country at 9.7 per cent in September

Two-pillar tax deal can help countries but needs a rejig to suit India

Tax in the time of digital

UP has immense possibilities, create new sources of revenue, says CM

Theft of revenue is a national loss and there is a need to raise awareness to prevent attempts to evade GST, Uttar Pradesh Chief Minister Yogi Adityanath said on Saturday as he stressed on creating new sources of revenue for the state. "Uttar Pradesh is a land of immense possibilities, we should also create new sources of revenue collection. Concerted efforts should be made in line with the GST and VAT collection target of Rs 1.50 lakh crore for the current financial year," an official release quoted the chief minister saying during a meeting to review the updated status of non-tax revenue receipts in the current fiscal. To increase revenue collection, a clear target should be given to field officers. This should be reviewed weekly or monthly, the chief minister said. "Quarterly review will continue from my end. Departments concerned should make every necessary effort for revenue collection relative to the target," he said. Adityanath said that strict action should be taken against

Unless Tamil Nadu widens revenue base, it can slip into debt trap: Experts

Tamil Nadu will fall into a debt trap if the govt continues to borrow to pay the old debt without focusing on infrastructure development, said experts

PM Modi urges states to maintain fiscal discipline, take prudent decisions

Prime Minister Narendra Modi on Saturday said that the Centre, states and Union Territories need to work as a team and develop a long-term common vision to fulfil the aspirations of people to make India a developed country by 2047, when the country completes 100 years of Independence. Addressing the eighth Governing Council meeting of NITI Aayog here, Modi also urged the states to maintain fiscal discipline and take financially prudent decisions which are capable of delivering programmes that meet the aspirations of the people. The Prime Minister urged the states to proactively use the Gati Shakti Portal not only for infrastructure and logistics but also for local area development and creation of social infrastructure. Briefing media about the deliberations of the meeting, NITI Aayog CEO BVR Subrahmanyam said that chief ministers and Lt Governors of 19 states and six UTs attending the meeting. However, chief ministers of 11 states -- Punjab, Bihar, Tamil Nadu, Karnataka, Delhi, ...

Centre strangulating Kerala by cutting down financial grants: Kerala FM

The ruling Left government in Kerala is now planning to rope in the Congress-led opposition to stage a joint protest against the Centre on this issue

Why do states want a bigger share of GST?

Finance ministers of some states have demanded a 10 percentage point jump in their share of revenue from GST collections. What is behind this demand? What will be its impact if implemented?

UP CM lauds excise department for curbing sale of spurious liquor

Uttar Pradesh Chief Minister Yogi Adityanath on Friday hailed the excise department's efforts to curb the supply and black-marketing of spurious liquor and increasing revenue, a government spokesperson said. Adityanath was speaking at an event where he congratulated 332 new constables on their recruitment to the excise department. He said, "Tireless efforts were made after 2017 to curb the supply of spurious liquor. Resultantly, the state managed to gather a revenue of about Rs 42,000 crore by the end of this year, in contrast to just Rs 12,000 crore in 2017. I urge all the newly-recruited constables to work as transparently and dedicatedly as the government did during their recruitment." The chief minister also expressed happiness on the recruitment of 109 women constables and said, "It is extremely heartening to see about 30% recruitment of women during the holy 'Sharadiya Navratri'. The government is committed to providing employment opportunities to the youth with utmost ...

Punjab power subsidy at multi-year high, other sops in focus in new budget

Punjab's new budget promises sops that may delay the state's date with fiscal prudence

The state of states

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

States' tax revenues lower than two years ago as demand for spending rises

An analysis of 17 states shows that while states' revenue spending in April-June 2021 was 14% higher than the same period in 2019, own revenues were 8% lower

Andhra Pradesh govt presents Rs 2.29 trillion budget for FY 2021-22

Andhra Pradesh government presented its annual budget for the financial year 2021-22 with an estimated expenditure of Rs 2.29 trillion and estimated revenue of Rs 1.77 trillion

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

Beyond the pandemic: The crisis of revenues

Once the pandemic is over, the states need to garner more own revenues to spend more on meritorious heads such as education, health and infrastructure

Financing the vaccine

Any cess or surcharge should be one-time

Centre gives Rs 6,000 crore to 14 states as revenue deficit grant

This is in line with interim recommendations of 15th finance commission; similar amount was released in April-Nov period of current fiscal