 "fiscal deficit, revenue, growth, economy, tax collections, expenditure, coronavirus, covid-19")
As many as nine states and two union territories saw their fiscal deficit as a percentage of gross state domestic product (GSDP) increase in the post pandemic period from the pre-pandemic and pandemic levels, a report by the PHD chamber of commerce and industry (PHDCCI) said on Monday.
The report by the industry body evaluated the performance of 29 states and union territories on five lead indicators like fiscal deficit, capital expenditure, per capita availability of power, GSDP growth and growth in social sector expenditure during three time periods - pre pandemic (FY 9 - FY 20), pandemic (FY 21), post- pandemic (FY 22 - FY 23).
“States are classified as resilient if their fiscal deficit as a percentage of GSDP has decreased from the pre-pandemic to the post-pandemic period,” the report says.
Among the states that are classified as non- resilient, the fiscal deficit as a percentage of GSDP has increased from both pre-pandemic and pandemic levels. This category includes states and UTs like West Bengal, NCT Delhi, Tripura, Uttar Pradesh, Nagaland, Manipur, Himachal Pradesh, Jammu & Kashmir, Goa, Assam, and Bihar.
On the other hand, states that are characterised as resilient are those where the fiscal deficit as a percentage of GSDP has decreased either from the pandemic level or the pre-pandemic level. This category encompasses Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Mizoram, Punjab, Rajasthan, Sikkim, Tamil Nadu, and Telangana.
The report also notes that in the union budget 2023-24 the government has adhered to its fiscal deficit target of 6.4 per cert of GDP for FY23 to promote resilience and macroeconomic stability. The fiscal deficit is also slated to be reduced to 5.9 per cent FY24, thereby signalling the Government’s strong commitment to continue the path of fiscal prudence.
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On the other indicators the report notes that 28 states are resilient in the GSDP growth scenario, 24 states have a consistently outstanding supply of power, 23 states were steadily increasing their spending in the social sector and 13 performed well in increasing their capex.
