Covid-19 impact: States stare at Rs 6-trillion fiscal hole, says SBI report

Might have to cut capex by 40%, says report

States might lose Rs 3 trillion in their own revenues this year thanks to the pandemic and the slow recovery of economic activity, State Bank of India said in a report. 

Add to that the share of the Centre’s tax revenues and additional expenditure lost, and states could be staring at a loss of Rs 6.2 trillion in financial year 2020-21 (FY21), the report said.

“Combining the loss in value-added tax, stamps duty and other sources with the loss in state goods and services tax (SGST), major states are going to lose Rs 1.2 trillion in the June quarter, and the annualised