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State Fiscal Prudence

Kumari Sonali

State Fiscal Prudence:

The Reserve Bank of India (RBI) released its report on state finances, highlighting the fiscal performance of Indian states.Gross Fiscal Deficit (GFD): States contained GFD within 3% of GDP in 2022-23 and 2023-24; budgeted at 3.2% for 2024-25.
Revenue Deficit: Limited to 0.2% of GDP in 2023-24.
Capital Expenditure: Increased from 2.4% of GDP in 2021-22 to 3.1% budgeted for 2024-25.
Outstanding Liabilities: Declined from 31% of GDP (March 2021) to 28.5% (March 2024), yet above the pre-pandemic level of 25.3%.

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