| Foreword |
| List of Abbreviations |
| Chapter I: Overview |
| Chapter II: Fiscal Position of State Governments |
| 1. Introduction |
| 2. Accounts: 2015-16 and 2016-17 |
| 3. Revised Estimates: 2017-18 |
| 4. Budget Estimates: 2018-19 |
| 5. Outstanding Liabilities of State Governments |
| 6. Concluding Observations |
| Chapter III: Issues and Perspectives |
| 1. Introduction |
| 2. State Pay Commission Awards |
| 3. Agricultural Debt Waiver |
| 4. Rationalisation of Public Distribution System - National Food Security Act (NFSA), 2013 |
| 4.1 Food subsidy and its implications |
| 4.2 Strengthening and improving the efficiency of PDS |
| 4.3 Cash Transfers: An alternative to PDS? |
| 5. Credibility of State Budgets |
| 6. States’ Market Access |
| 7. Concluding Observations |
| Annex-III.1 Implementation of National Food Security Act (NFSA) by the States/Union Territories (UTs) |
| Chapter IV: Way Forward |
| References |
| Explanatory Note on Data Sources and Methodology |
| LIST OF BOXES |
| II.1 Goods and Services Tax (GST) – A State Level Analysis |
| III.1 Impact of Agricultural Loan Waivers – The Tamil Nadu Experience |
| III.2 SDL Yield spreads: Do they Reflect Underlying Fundamentals? |
| LIST OF TABLES |
| II.1 Major Deficit Indicators of State Governments: All States |
| II.2 Fiscal Imbalances in Non-Special and Special Category States |
| II.3 Aggregate Receipts of State Governments |
| II.4 Expenditure Pattern of State Governments |
| II.5 Deficit Indicators of State Governments: State-wise |
| II.6 Variation in Major Items |
| II.7 Decomposition and Financing Pattern of Gross Fiscal Deficit |
| II.8 Composition of Expenditure on Social Services (Revenue and Capital Accounts) |
| II.9 Outstanding Liabilities of State Governments |
| II.10 Composition of Outstanding Liabilities of State Governments |
| II.11 Gross and Net Market Borrowing of State Governments |
| II.12 Maturity Profile of Outstanding State Government Securities |
| III.1 Pay Commission Implementation by the States |
| III.2 NFSA vis-à-vis Erstwhile TPDS |
| III.3 Subsidised Food Items other than Foodgrains and Sugar Distributed by the States |
| III.4 Credibility of State Budget (PEFA PFM Scores in Number of States) |
| LIST OF CHARTS |
| II.1 Major Deficit Indicators |
| II.2 Anatomy of Fiscal Deterioration in 2017-18 |
| II.3 Committed Expenditures |
| II.4 GFD as percentage to GSDP: 2018-19 (BE): State-wise |
| II.5 Composition of Revenue Receipts and Expenditure: 2018-19 (BE) |
| II.6 Social Sector Expenditures |
| II.7 Debt and Interest Burden |
| II.8 Market Borrowings: Gross and Net |
| II.9 Gross Market Borrowings: State-wise |
| II.10 Maturity Profile of SDLs |
| II.11 Utilisation of WMA and Overdraft by States |
| III.1 Growth (y-o-y) in Revenue Expenditure of Select States that Implemented Pay Commission Awards in 2017-18 |
| III.2 Growth (y-o-y) in Wages and Salaries of Select States that Implemented Pay Commission Awards |
| III.3 Loan Waiver - Contribution to Fiscal Deficit of States |
| III.4 Food Subsidy Released to State Government Agencies |
| III.5 State Subsidy on NFSA Foodgrains due to Issue Price Differential: 2017-18 |
| III.6 Key Deficit Indicators: Actual vs Budget Estimates (BE) |
| III.7 Revenue Expenditure to Capital Expenditure Ratio (in per cent) |
| III.8 Credibility of State Budgets - Expenditure and Revenue Outturns |
| III.9 State Developmental Loans (SDLs) vs Government Securities (G-sec) Net Issuances |
| III.10 Average Spread in SDL Yields Over Corresponding G-Sec |
| III.11 Share of Banks’ Investments in SDLs to total G-secs |
| III.12 SDL Turnover Ratio |
| LIST OF APPENDIX TABLES FOR STATES’ BUDGETS 2017-18 AND 2018-19 |
| 1 Major Deficit Indicators of State Governments |
| 2 Devolution and Transfer of Resources from the Centre |
| 3 Development and Non-Development Expenditure: Aggregate |
| 4 Development Expenditure - Major Heads |
| 5 Non-Development Expenditure - Major Heads |
| 6 Development and Non-Development Expenditure |
| 7 Composition of Social Sector Expenditure |
| 8 Decomposition of Gross Fiscal Deficit |
| 9 Financing of Gross Fiscal Deficit |
| 10 Financing of Gross Fiscal Deficit - As Per cent to Total |
| 11 Composition of Outstanding Liabilities of State Governments |
| 12 Composition of Outstanding Liabilities of State Governments - As Proportion to Total |
| 13 State Government Market Borrowings |
| LIST OF STATEMENTS AND APPENDICES FOR STATES’ BUDGETS 2017-18 |
| LIST OF STATEMENTS |
| 1 Major Fiscal Indicators |
| 2 Revenue Deficit/Surplus |
| 3 Gross Fiscal Deficit/Surplus |
| 4 Decomposition of Gross Fiscal Deficit |
| 5 Financing of Gross Fiscal Deficit – 2015-16 (Accounts) |
| 6 Financing of Gross Fiscal Deficit – As per cent to Total – 2015-16 (Accounts) |
| 7 Financing of Gross Fiscal Deficit – 2016-17 (RE) |
| 8 Financing of Gross Fiscal Deficit – As per cent to Total – 2016-17 (RE) |
| 9 Financing of Gross Fiscal Deficit – 2017-18 (BE) |
| 10 Financing of Gross Fiscal Deficit – As per cent to Total – 2017-18 (BE) |
| 11 Development Expenditure |
| 12 Non-Development Expenditure |
| 13 Interest Payments |
| 14 Tax Revenue |
| 15 Non-Tax Revenue |
| 16 Loans from the Centre |
| 17 Devolution and Transfer of Resources from the Centre |
| 18 Composition of Outstanding Liabilities |
| 19 Total Outstanding Liabilities of State Governments |
| 20 Total Outstanding Liabilities - As percentage to GSDP |
| 21 Market Borrowings of State Governments |
| 22 State Government Market Loans |
| 23 Maturity Profile of Outstanding State Government Securities |
| 24 Maturity Profile of Outstanding State Government Securities - As Percentage to Total |
| 25 Investment Outstanding in Treasury Bills |
| 26 Expenditure on Education - As Ratio to Aggregate Expenditure |
| 27 Expenditure on Medical and Public Health and Family Welfare - As Ratio to Aggregate Expenditure |
| 28 Outstanding Guarantees of State Governments |
| 29 Expenditure on Wages and Salaries |
| 30 Expenditure on Operations and Maintenance |
| 31 Social Sector Expenditure |
| 32 Social Sector Expenditure to Total Disbursement |
| 33 Revenue Receipts of State Governments |
| 34 Revenue Expenditure of the State Governments |
| 35 Development Expenditure: Select Indicators |
| APPENDICES |
| I. Revenue Receipts of States and Union Territories with Legislature |
| II. Revenue Expenditure of States and Union Territories with Legislature |
| III. Capital Receipts of States and Union Territories with Legislature |
| IV. Capital Expenditure of States and Union Territories with Legislature |
| LIST OF STATEMENTS AND APPENDICES FOR STATES’ BUDGETS 2018-19 |
| LIST OF STATEMENTS |
| 1 Major Fiscal Indicators |
| 2 Revenue Deficit/Surplus |
| 3 Gross Fiscal Deficit/Surplus |
| 4 Decomposition of Gross Fiscal Deficit |
| 5 Financing of Gross Fiscal Deficit – 2016-17 (Accounts) |
| 6 Financing of Gross Fiscal Deficit – As per cent to Total – 2016-17 (Accounts) |
| 7 Financing of Gross Fiscal Deficit – 2017-18 (RE) |
| 8 Financing of Gross Fiscal Deficit – As per cent to Total – 2017-18 (RE) |
| 9 Financing of Gross Fiscal Deficit – 2018-19 (BE) |
| 10 Financing of Gross Fiscal Deficit – As per cent to Total – 2018-19 (BE) |
| 11 Development Expenditure |
| 12 Non-Development Expenditure |
| 13 Interest Payments |
| 14 Tax Revenue |
| 15 Non-Tax Revenue |
| 16 Loans from the Centre |
| 17 Devolution and Transfer of Resources from the Centre |
| 18 Composition of Outstanding Liabilities |
| 19 Total Outstanding Liabilities of State Governments |
| 20 Total Outstanding Liabilities - As percentage to GSDP |
| 21 Market Borrowings of State Governments |
| 22 State Government Market Loans |
| 23 Maturity Profile of Outstanding State Government Securities |
| 24 Maturity Profile of Outstanding State Government Securities - As Percentage to Total |
| 25 Investment Outstanding in Treasury Bills |
| 26 Expenditure on Education - As Ratio to Aggregate Expenditure |
| 27 Expenditure on Medical and Public Health and Family Welfare - As Ratio to Aggregate Expenditure |
| 28 Outstanding Guarantees of State Governments |
| 29 Expenditure on Wages and Salaries |
| 30 Expenditure on Operations and Maintenance |
| 31 Social Sector Expenditure |
| 32 Social Sector Expenditure to Total Disbursement |
| 33 Revenue Receipts of State Governments |
| 34 Revenue Expenditure of the State Governments |
| 35 Development Expenditure: Select Indicators |
| APPENDICES |
| I. Revenue Receipts of States and Union Territories with Legislature |
| II. Revenue Expenditure of States and Union Territories with Legislature |
| III. Capital Receipts of States and Union Territories with Legislature |
| IV. Capital Expenditure of States and Union Territories with Legislature |
| NOTE TO APPENDICES |