Data on state budgets is patchy and irregular yet given that they collectively outspend the Centre, such information is becoming vital for any accurate assessment of the Indian economy. In fact, even a study of the limited unaudited data available for 20 large states points to a developing anomaly, writes A K Bhattacharya. States have performed poorly on revenue collection but outspend the Centre, especially on revenue expenditure. The Centre, on the other hand, is making huge gains in revenue through both collections and reduced transfers to the states but has kept expenditure under control. The Centre, therefore, will celebrate