| Foreword |
| List of Abbreviations |
| Chapter I: Overview |
| Chapter II: Fiscal Position of the State Governments |
| 1. Introduction |
| 2. Key Fiscal Indicators |
| 3. Receipts |
| 4. Expenditure |
| 5. Actual Outcome in 2023-24 So Far and Outlook |
| 6. Financing of GFD and Market Borrowings by State Governments and UTs |
| 7. Outstanding Liabilities |
| 8. Conclusion |
| Annex I.1: Deficit Indicators - State-wise |
| Annex I.2: States’ Expenditure on Research and Development (R&D) |
| Chapter III: Revenue Dynamics and Fiscal Capacity of Indian States |
| 1. Introduction |
| 2. Revenue Mobilisation Efforts and Current Fiscal Capacity of States |
| 3. Inter-Governmental Transfers |
| 4. Concluding Observations |
| Annex II.1: Recent Tax Reforms by States |
| Annex II.2: Recent Non-Tax Revenue Reforms by States |
| Chapter IV: The Way Forward |
| References |
| Explanatory Note on Data Sources and Methodology |
| e-STATES Database |
| LIST OF BOXES |
| II.1 Vertical Fiscal Imbalance in India - Changing Dynamics |
| II.2 States’ Own Tax Revenue Buoyancy - Forecasts versus Realisation |
| II.3 Streamlining Fund Transfers for Efficient Governance - Government’s Cash Management Reforms |
| III.1 Tax Capacity of Indian States |
| III.2 Harnessing Tax Capacity: Cross-Country Evidence |
| III.3 Power Distribution Reforms – The Current Status and Way Forward |
| LIST OF TABLES |
| II.1 Major Deficit Indicators - All States and Union Territories with Legislature |
| II.2 Aggregate Receipts of State Governments and UTs |
| II.3 Expenditure Pattern of State Governments and UTs |
| II.4 Market Borrowings of State Governments |
| II.5 Maturity Profile of Outstanding State Government Securities |
| II.6 Investment of Surplus Cash Balance of State Governments/UTs |
| II.7 Investment in CSF/GRF by States |
| II.8 Outstanding Liabilities of State Governments and UTs |
| II.9 Composition of Outstanding Liabilities of State Governments and UTs |
| II.10 Guarantees issued by State Governments |
| III.1 SOTR as a proportion of Overall Tax Revenue |
| III.2 SONTR as a Proportion of Total Revenue |
| III.3 States' Share in the Divisible Pool of Central Taxes Recommended by Finance Commissions |
| III.4 Weights for Horizontal Devolution Prescribed by Various Finance Commissions |
| III.5 Collections from Major Cesses Levied by the Union Government |
| LIST OF CHARTS |
| II.1 Key Fiscal Indicators |
| II.2 States' GFD-GSDP Ratios and FRL Limit in 2023-24 |
| II.3 Change in Own-Tax Revenue in 2021-22 |
| II.4 Own Tax Revenue |
| II.5 Revenue Expenditure: Increment in 2021-22 over 2020-21 |
| II.6 Social Sector and Committed Expenditure |
| II.7 Increment in Capital Outlays during 2021-22 |
| II.8 Research and Development Expenditure - Component-wise |
| II.9 States’ Revenue Receipts during H1 |
| II.10 States’ Revenue Expenditure during H1 |
| II.11 Growth in Capital Outlay during H1 |
| II.12 Gross Market Borrowings of States: Month-wise |
| II.13 Gross Market Borrowings of States: State-wise and Indicative Calendar |
| II.14 State-wise Net Market Borrowings |
| II.15 SGSs – Maturity and Yield Spread |
| II.16 States’ Outstanding Liabilities at end-March 2024 (BE) |
| II.17 Debt and Interest Burden |
| III.1 States’ Own Tax Revenue |
| III.2 Components of Own Tax Revenue of States |
| III.3 Buoyancy in SOTR and Growth in SGST |
| III.4 States’ Own Non-Tax Revenue |
| III.5 Components of States’ Own Non-Tax Revenue |
| III.6 Revenues from Economic Services |
| III.7 Revenues from Social Services |
| III.8 Share of Sub-national Governments as a Ratio of General Government |
| III.9 Composition of Fiscal Transfers to States |
| III.10 Share of Fiscal Transfers in Total Expenditure |
| III.11 Vertical Tax Devolution |
| III.12 Principles of Horizontal Distribution |
| III.13 Revenue Collection of Union Government from Cesses |
| III.14 Tax Devolution to States |
| III.15 Grants from the Centre to States |
| III.16 Year–wise Grants and Incentives–FC XV Recommendations |
| III.17 States’ Reliance on Central Transfers |
| LIST OF APPENDIX TABLES FOR STATES’ BUDGETS 2023-24 |
| 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 of Total |
| 11. Composition of Outstanding Liabilities of State Governments and UTs |
| 12. Composition of Outstanding Liabilities of State Governments and UTs - As Proportion to Total |
| 13. State Government Market Borrowings |
| LIST OF STATEMENTS AND APPENDICES FOR STATES’ BUDGETS 2023-24 |
| 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 – 2021-22 (Accounts) |
| 6. Financing of Gross Fiscal Deficit – As per cent of Total – 2021-22 (Accounts) |
| 7. Financing of Gross Fiscal Deficit – 2022-23 (RE) |
| 8. Financing of Gross Fiscal Deficit – As per cent of Total – 2022-23 (RE) |
| 9. Financing of Gross Fiscal Deficit – 2023-24 (BE) |
| 10. Financing of Gross Fiscal Deficit – As per cent of Total – 2023-24 (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 per cent of Gross State Domestic Product |
| 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 of 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 per cent of 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 as per cent of Total Disbursement |
| 33. Revenue Receipts of State Governments and UTs |
| 34. Revenue Expenditure of State Governments and UTs |
| 35. Development Expenditure: Select Indicators |
| 36. Subsidies |
| 37. States' Expenditure on Medical and Public Health, Family Welfare and Water Supply and Sanitation |
| 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 |
| NOTES TO APPENDICES |