Page 2 - State Finances

GST Council: Stormy discussion around states' compensation likely today

States will demand an extension of the compensation period or a change in the GST revenue distribution formula

States showing warning signs of stress; need corrective action: RBI article

Observing that the slowdown in own tax revenue, a high share of committed expenditure and rising subsidy burdens have stretched state government finances already exacerbated by Covid, the article said

State finances improve, gross fiscal deficit declines 31.5%: RBI report

In addition to the regular instalment of tax devolution, the Centre released two advance instalments of in November 2021 and January 2022.

Not all states are so financially weak that they can't announce freebies

However some such as Punjab and West Bengal are not on sound financial ground

Tamil Nadu Budget aims to cut revenue deficit by Rs 7,000 crore

Rs 2,531 crore for waiver of agricultural loans, Rs 1,000 crore for waiver of jewel loans and Rs 600 crore for waiving self-help group loans has been allotted

Pension bills of states cut into municipal budget in the time of Covid

An RBI analysis showed that during the second wave, 22% of municipalities reported revenue loss of an alarming 50% and more

Big-ticket stake: Tamil Nadu's Thiagarajan sets out to fix state finances

From banking in the US to politics in India, Thiagarajan's journey has been eventful.

Huge spike in states' Q4 spend to be used mostly to settle current bills

Aggregate debt raised from the market by states has risen in nine months of this year by a massive 43.5% over last year. It is the biggest jump in state borrowings ever

Why the fifteenth finance commission report merits a proper discussion

It is vital that we have a proper discussion on the medium-term economic and fiscal situation based on the Fifteenth Finance Commission medium-term assessment

Best of BS Opinion: Brace for return migration, overseas listing, and more

Here's a selection of Business Standard opinion pieces for the day

The curious case of a Rs 2.55-trillion discrepancy in state govt accounts

The territories have either spent excessively or have saved unreasonably. In either case, there is a cost that the citizen ends up bearing

Revenue and compensation on table at GST Council meeting on Friday

The government has rung up just about Rs 95,000 crore as GST in April and May together, and that is less than half compared with the collection in the corresponding months last year.

Fiscal stimulus by FM is mostly credit oriented, says Subhash Chandra Garg

He said that the fiscal stimulus, by its very nature, is additional fiscal burden on the public finances

RBI raises limit on ways and means advances, but states aren't impressed

Ways and means advances (WMAs) are short-term advances the central bank gives to help states tide over temporary mismatches in their cash flow.

Top headlines: Steel firms struggle, state finances to take a hit, and more

From Uber and BigBasket joining hands to deliver essentials, oil producers seeking relief from govt to venture capitalists warning start-ups, Business Standard brings you top headlines of the day

State FMs meet Sitharaman, express concern over delay in GST compensation

Speaking to reporters after the meeting, Punjab Finance Minister Manpreet Singh Badal said, August and September compensation has not been released to states.

How over-dependence on central funds is driving states to fiscal peril

The RBI report on state finances shows that states' own revenues are faltering, while its social spending is rising squarely on account of centrally-sponsored schemes

How state finances could delay investment cycle

Worsening state finances widely appreciated; their impact on private investments less understood

How to arrest deterioration in state finances

States have unsustainable debt levels and it's time for the Finance Commission to amend fiscal rules