| Foreword |
| List of Abbreviations |
| Chapter I: Overview |
| Chapter II: Fiscal Position of State Governments |
| 1. | Introduction |
| 2. | Accounts: 2014-15 |
| 3. | Revised Estimates: 2015-16 |
| 4. | Budget Estimates: 2016-17 |
| 5. | Budget Estimates: 2017-18 |
| 6. | Outstanding Liabilities of State Governments |
| 7. | Debt Sustainability of Indian States |
| 8. | Concluding Observations |
| Chapter III: Goods and Services Tax: A Game Changer |
| 1. | Introduction |
| 2. | The Concept |
| 3. | The Cross Country Experience |
| 4. | The Indian Context – Overview and Status |
| 5. | Experience of Indian States with VAT |
| 6. | Concluding Observations |
| Chapter IV: Issues and Perspectives |
| 1. | Introduction |
| 2. | Debate on the Revenue Neutral Rate |
| 3. | Dispute Resolution Mechanism and IT Infrastructure |
| 4. | Administrative Control of GST |
| 5. | Fiscal Federalism and GST |
| 6. | Central Transfers to States |
| 7. | Implications of Special Levies |
| 8. | Concluding Observations |
| Chapter V: Way Forward |
| Annex I – GST Council Meeting and Major Decisions – Timeline |
| Annex II – Stochastic Frontier Analysis – Methodology |
| References |
| Explanatory Note on Data Sources and Methodology |
| LIST OF BOXES |
| II.1 | Relaxation of Fiscal Rules for States |
| II.2 | Debt Sustainability of Indian States – Inter-Temporal Budget Constraint Approach |
| III.1 | What GST Implies for Various Economic Agents |
| III.2 | Impact on Inflation |
| III.3 | Integrated Goods and Services Tax (IGST) |
| IV.1 | Can there be an Optimal Rate for Taxing Commodities |
| IV.2 | Goods and Services Tax Network (GSTN) |
| LIST OF TABLES |
| II.1 | Major Deficit Indicators of State Governments |
| 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 | Variation in Major Items |
| II.6 | Deficit Indicators of State Governments |
| II.7 | Decomposition and Financing Pattern of Gross Fiscal Deficit |
| II.8 | Composition of Expenditure on Social Services (Revenue and Capital Accounts) |
| II.9 | Major Deficit Indicators of State Governments |
| II.10 | Outstanding Liabilities of State Governments |
| II.11 | Composition of Outstanding Liabilities of State Governments |
| II.12 | Maturity Profile of Outstanding State Government Securities |
| II.13 | Fiscal Sustainability of All State Governments – Indicator-based Analysis |
| III.1 | Taxes subsumed under GST |
| III.2 | VAT and GST |
| III.3 | VAT/GST Rates – Select Countries |
| III.4 | GST Revision in Singapore |
| IV.1 | Revenue Neutral Rate |
| IV.2 | Share of Revenue of State Governments |
| IV.3 | Cess imposed by the Central Government |
| IV.4 | Surcharge Imposed by Central Government |
| IV.5 | Special Levies by the Central Government |
| LIST OF CHARTS |
| II.1 | Major Deficit Indicators |
| II.2 | Gross Fiscal Deficit |
| II.3 | Committed Expenditure |
| II.4 | Social Sector Expenditure |
| II.5 | Debt and Interest Burden |
| II.6 | Utilisation of WMA and Overdraft by States |
| III.1 | VAT/GST Rates |
| III.2 | State Revenue Portfolios |
| III.3 | The Growth-and-Volatility Efficiency Frontier: Sales Tax – NSC States |
| III.4 | The Growth-and-Volatility Efficiency Frontier: Sales Tax – SC States |
| LIST OF APPENDIX TABLES |
| 1 | Major Deficit Indicators of State Governments |
| 2 | Devolution and Transfer of Resources from the Centre |
| 3 | Development and Non-Development Expenditure |
| 4 | Development Expenditure – Major Heads |
| 5 | Non-Development Expenditure – Major Heads |
| 6 | Development and Non-Development Expenditure – Plan and Non-Plan Components |
| 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 |
| 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 – 2014-15 (Accounts) |
| 6 | Financing of Gross Fiscal Deficit- As per cent to Total – 2014-15 (Accounts) |
| 7 | Financing of Gross Fiscal Deficit- 2015-16 (RE) |
| 8 | Financing of Gross Fiscal Deficit- As per cent to Total – 2015-16 (RE) |
| 9 | Financing of Gross Fiscal Deficit – 2016-17 (BE) |
| 10 | Financing of Gross Fiscal Deficit- As per cent to Total -2016-17 (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 of 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 Expenditure |
| 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 |
| NOTES TO APPENDICES |