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LATEST NEWS UPDATES | The bad news from state budgets -Ishan Bakshi

The bad news from state budgets -Ishan Bakshi

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published Published on Mar 18, 2021   modified Modified on Mar 18, 2021

-The Indian Express

States have spent less in this year, may focus on fiscal consolidation in the year to come. This belies hopes of a public-spending-led recovery.

Over the past few weeks, several state governments have presented their budgets for the financial year 2021-22. These budgets shed light not only on how state finances have fared during the current year (2020-21) but equally critically, detail the expenditure stance of these governments during these tumultuous years (2020-22). Considering that the states, put together, account for a larger share of general government spending than the Centre, their spending stance is pivotal to the hopes of a government spending-led economic recovery.

The broad state-level budget trends highlighted in this article are based on 11 states that account for a little over 60 per cent of India’s GDP. While more concrete trends will emerge once all states present their budgets, this does provide a sense of what transpired in the year almost gone by, and what to expect in the coming financial year.

Five broad trends emerge.

Please click here to read more.


The Indian Express, 18 March, 2021, https://indianexpress.com/article/opinion/columns/state-budgets-2021-coronavirus-impact-economy-gdp-7233353/


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