A synchronous improvement in the fiscal health of the Centre and states in the aftermath of the covid pandemic appears to have given way to divergence already. Staring at sizeable fiscal deficits, all had embarked on strict regimens to cut the flab from their budgets. However, recent data indicates many states have slipped on their fiscal fitness journey.
The divergence began last fiscal year. The Centre stayed on the fiscal consolidation path after the pandemic-led spike to 9.2% in 2020-21 and achieved a fiscal deficit of 5.6% of gross domestic product (GDP) in 2023-24, compared with a budgeted 5.9%, thanks to buoyant tax revenue, a large dividend from the Reserve Bank of India and restrained revenue expenditure growth.
States too saw their aggregate gross fiscal deficit decline from 4.1% in 2020-21 to 2.8% in 2021-22 and 2022-23, with revenue expenditure normalizing and revenue collection improving. But since then, the financials of several states have weakened.
The latest state budgets reveal vast differences in the budget estimates (BE) and revised estimates (RE) of the key fiscal parameters of states in 2023-24.
For instance, the fiscal deficits of nine of the 18 non-special category (NSC) states analysed overshot their budget targets. Of these nine, the revenue of four was below target, while the expenditure of five exceeded the target. Of the remaining nine, five cut their expenditure in the face of lower revenue to contain their fiscal deficits.
هذه القصة مأخوذة من طبعة October 31, 2024 من Mint Mumbai.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة October 31, 2024 من Mint Mumbai.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Buying Online? Beware Of these deceptive patterns
Deceptive prompts in apps—ways to coerce people into spending more time or money—are on the rise. Here's how to identify them
As AI gets real, slow and steady wins the race
Companies head into 2025 with careful deliberation when it comes to using AI
Why the Earth Is Not a Type 1 Technological Civilization
According to one theory about how we harness energy, Type 1s have total control over planetary energy resources
Our legislative frameworks must adapt to the rise of AI
Probabilistic digital systems complicate guilt assignment but we'll need tight controls against major harms
Take tax action for Viksit Bharat in the Union budget for 2025-26
The government could take major steps towards its worthy goal of a tax regime that's simple, predictable and competitive
Trump's US mustn't repeat its profiling of Chinese scientists
Espionage suspicions could lead the US to lose its war for talent
The rise of Trump poses a paradox of higher education
An elitist college system seems to have deepened divisions in the US and this may hold lessons for India too
There's a case for heavy taxes on MNC royalties
Royalty payments to MNCs by their local units have been rising-even going above dividend payouts in some cases. India needs shareholder vigilance and fiscal action to curb excesses
Financial frauds evolve fast but we can still safeguard ourselves
While technology has transformed how scamsters operate, reliable ways exist to dodge their traps
Smart-beta funds: A guide to balancing your portfolio
Tailor-made strategies will help you navigate the market cycles better and optimize returns