Fiscal deficit of States slides to 3.83% of GDP

The combined fiscal deficit of states has come down to 3.83 per cent of GDP last fiscal from 4.72 per cent in 1999-2000, after the governmen...

The combined fiscal deficit of states has come down to 3.83 per cent of GDP last fiscal from 4.72 per cent in 1999-2000, after the government initiated a medium term fiscal reforms programme in 22 states.

Following the recommendations of the 11th Finance Commission, the medium term fiscal reforms programme was finalised for 22 states including Andhra Pradesh, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, West Bengal and Uttar Pradesh, official sources said.

The scheme also covers the six North-Eastern states along with Jammu & Kashmir and Chhattisgarh. Accordingly, sources said government provided a total Rs 1,180 crore to the states from the incentive fund last fiscal and another Rs 482 crore in this fiscal. The amount released for encouraging fiscal reforms was higher at Rs 1,457 crore in 2001-2002.

Story continues below this ad

J&K received the maximum amount of over Rs 666 crore since April 2001, while West Bengal obtained Rs 542 crore and Uttar Pradesh got Rs 405 crore. The other states that received significant amounts for fiscal reforms include Nagaland (Rs 200 crore), Rajasthan (Rs 172 crore), Himachal Pradesh (Rs 161 crore) and Manipur (Rs 110 crore).

Most of the states are in financial difficulty on account of high expenditures on interest, pension and salary. While spendings kept on increasing, many of the states witnessed decline in the growth of revenue collections.

Trump announces TikTok deal, surprise China visit ‘early next year’ after call with Xi

World11 hr ago

Trump and Xi had a successful phone call, addressing trade, Fentanyl, and TikTok. They plan to meet at APEC Summit and for Trump to visit China, with Xi visiting the US. Congress wants TikTok to sell its US assets or shut down, but Trump has not enforced this due to the app's value and progress.

View all shorts

Live Blog