Public finance of states to improve in FY22 over earlier projections: IndRa

Expects higher gross domestic product at current prices and revenues in the current financial year than projected earlier, despite impact of the second wave of Covid-19

Despite the impact of the second Covid wave, states are now better placed in terms of public finances than earlier thought. India Ratings sees a better performance owing to expectations of higher gross domestic product at current prices and revenues in the current financial year.
 
The rating agency analysed 14 states — Uttar Pradesh, Uttarakhand, Telangana, Tamil Nadu, Odisha, Rajasthan, Punjab, Maharashtra, Madhya Pradesh, Kerala, Karnataka, Jharkhand, Haryana and Chhattisgarh. Of these, two states — Karnataka and Haryana — are projected to witness widening of their fiscal deficit in the current financial year compared to the previous financial year.