Budget 2024: State governments have stepped up capital expenditure

CHALLENGES
 

- States have been increasing capital expenditure, but fiscal deficit remains higher than pre-pandemic times

- Devolution of central taxes among states has remained a contentious issue over cess and surcharge collections which are not shared with the states

TAKEAWAYS

- Purvodaya, a plan for the all-round development of the eastern region of the country including Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh

- Additional allocations for the development of Andhra Pradesh and Bihar in terms of infrastructure development