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A boost for states’ capex

Total expenditure is likely to rise to Rs 41.54 trillion from Rs 30.05 trillion during the same period.

A boost for states’ capex
States' fiscal deficit has risen after the pandemic and is above the target of 3%.

The recent spurt in economic activity is giving the revenue mobilisation of states a much-needed boost, which, in turn, is helping them spend more, especially on capital expenditure.

An assessment of the finances of 18 states by the National Institute of Public Finance and Policy shows the states’ total revenue receipts is expected to grow to Rs 33.84 trillion in FY23 (BE) from Rs 22.69 trillion in FY21 because of a substantial rise in the states’ own-tax revenue.

Total expenditure is likely to rise to Rs 41.54 trillion from Rs 30.05 trillion during the same period. However, states’ fiscal deficit has risen after the pandemic and is above the target of 3%.

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