States expect subdued revenue receipts in FY20; cut expenditure growth

With revenues expected to grow at a slower pace, states have curtailed their expenditures

Over the past few weeks, several state governments have presented their budgets for 2019-20. A Business Standard analysis of 11 state budgets throws up four major trends. 

First, at the aggregate level, states have projected their own tax revenues to grow at a much slower pace in 2019-20 (BE) as compared to 2018-19 (RE). 

Second, while these states have pegged their non-tax revenues at almost the same level as last year, grants-in-aid from the Centre are budgeted to be marginally lower in the next financial year. 

Third, with revenue receipts expected to grow much slower in FY20, states have restricted