Abstract:
While India’s Union Government finances show a degree of consolidation, the finances of State Governments show signs of increasing fiscal imbalance reflected in levels of both revenue and fiscal deficits in a large number of States. This brief summarizes financial studies and fiscal analysis of state budgets and spending in India. State-wise analyses reveal that, while all States benefitted from the increase in tax devolution in 2015-16 (as compared to 2014-15), many experienced a reduction in central grants. The brief includes detailed analysis of the Ujwal DISCOM Assurance Yojana (UDAY) energy/power program and its impact on sub-national public finances.
