Most states have presented their own Budgets for the next fiscal year. States that are going to the polls saw the presentation of a vote-on-account, a temporary provision that enables government spending till a new government is formed.
An analysis of select state Budgets —with the help of a report by the State Bank of India — shows that they have more than one thing in common. To keep their expenditure at the desired levels at a time of significant revenue losses, all states have expanded their fiscal deficits — similar to what the Centre did last month. Chart 1