Report provides a consolidated fiscal overview of all 28 States, enabling an inter-State and intertemporal analysis over 10 years from 2015-16 to 2024-25.
Key Highlights of the Report
- Public Debt and Total Liabilities: Outstanding combined public debt stood at ₹75.52 lakh crore (23.27% of GSDP), while total liabilities reached 27.89% of GSDP.
- Public debt receipts constituted over 99% of total capital receipts, indicating heavy dependence on borrowings for financing expenditure.
- Public debt includes Internal Debt and Loans and Advances from the Union government.
- Fiscal Deficit: As against the Fifteenth Finance Commission's benchmark of 3% of GSDP, 18 States recorded fiscal deficits above the prescribed threshold in FY 2024-25.
- Fiscal responsibility indicators for the period 2015-16 to 2024-25 reveal that all States together remained in revenue and fiscal deficit.
- Low Capital Expenditure: Revenue expenditure constituted 83.41% of total expenditure, while capital expenditure accounted for 16.59% in FY 2024-25.
- Share in Union Taxes and Duties: Share of the States in devolution of taxes and duties, as percentage of the total combined revenue receipts, increased from 27.73 % in FY 2015-16 to 31.76 %.
- Subsidies: During the period 2015–16 to 2024–25, subsidy expenditure remained largely in the range of 8–10% of the total revenue expenditure of all States combined.
- Subsidies are mainly directed toward energy utilities and the agriculture related activities.
The report highlights the need for prudent debt management and fiscal discipline to ensure sustainable State finances.
