State of State Finances in India in the Present Decade

Sacchidananda Mukherjee

MPRA Paper from University Library of Munich, Germany

Abstract: The paper examines the evolution of state finance pre-GST and post-GST, focusing on 28 Indian states (18 Major and 10 minor). The findings reveal an average annual revenue deficit increase for major and minor states post-GST. Major states experienced a decline in overall Fiscal Deficit (FD). However, minor states faced an increase due to challenges in generating additional revenue resources. Grants-in-aid and the GST compensation receipts played significant roles in sustaining revenue streams for major states. The study emphasizes the importance of sustaining economic growth, exploring revenue potential within given constitutional powers, improving forecasting methods, and addressing challenges in reducing public debt.

Keywords: State Finances; Public Debt; Revenue Deficit; Fiscal Policy; India (search for similar items in EconPapers)
JEL-codes: H2 H4 H7 (search for similar items in EconPapers)
Date: 2023-11-02
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Published in State Forum 2023: A Compendium (2023): pp. 17-41

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:121769

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