IDEAS home Printed from https://ideas.repec.org/p/npf/wpaper/22-386.html
   My bibliography  Save this paper

Analysis of State Budgets 2022-23 of Major States in India

Author

Listed:
  • Mukherjee, Sacchidananda

    (National Institute of Public Finance and Policy)

Abstract

After two consecutive years (2019-20 and 2020-21) of fiscal stress, state finances in India show sign of improvement in 2021-22RE. With rising economic growth, revenue mobilization has improved which helped states to increase expenditures during 2021-22. To cope up with the revenue stress and rein in deficits and debts, states have ontained growth in expenditures during 2019-21. Despite all efforts consolidated fiscal deficit of 18 major states went up from 2.49 % of aggregate GSDP in 2018-19 to 2.56% in 2019-20 and 3.89% in 2020-21. Consolidated public debt of 18 states increased from 19.66% of GSDP in 2018-19 to 20.53% in 2019-20 and 23.04% in 2020-21. States received GST compensation from the GST compensation fund which helped them to contain revenue and fiscal deficits. States also received back-to-back loans in lieu of shortfall in GST compensation fund from the Centre during 2020-21 and 2021-22 which helped them to contain public debt. Given the growth prospects of GSDP in 2022-23, overall revenue side of State Budgets 2022-23 seems realistic as states have set cautious targets in revenue mobilization. It is also to be highlighted that states have taken into account fiscal implications of the end of GST compensation regime in the budget estimates of 2022-23. States have resumed following the path of fiscal consolidation post COVID-19 pandemic. Successes in achieving revenue as well as expenditures targets set in the budget of 2022-23 could help states to control deficits and debts.

Suggested Citation

  • Mukherjee, Sacchidananda, 2022. "Analysis of State Budgets 2022-23 of Major States in India," Working Papers 22/386, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:22/386
    Note: Working Paper 386, 2022
    as

    Download full text from publisher

    File URL: https://nipfp.org.in/media/medialibrary/2022/08/WP_386_2022.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rao, R Kavita, 2022. "GST, End of Compensation Regime and Stress on State Finances," Working Papers 22/376, National Institute of Public Finance and Policy.
    2. Mukherjee, Sacchidananda & Badola, Shivani, 2021. "Public Finance Management in India in the time of COVID-19 Pandemic," Working Papers 21/337, National Institute of Public Finance and Policy.
    3. Mukherjee, Sacchidananda, 2021. "Revenue Shortfall and GST Compensation: An Assessment," Working Papers 21/356, National Institute of Public Finance and Policy.
    4. Choudhury, Mita & Datta, Pritam, 2022. "The "Scissors Effect" of COVID 19 Pandemic on State Finances: Emerging Evidence on Expenditures," Working Papers 22/369, National Institute of Public Finance and Policy.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mukherjee, Sacchidananda, 2022. "State Finances in India - Analysis of Budget 2022-23 of Major States," MPRA Paper 113955, University Library of Munich, Germany.
    2. Mukherjee, Sacchidananda, 2022. "Revenue Assessment of Goods and Services Tax (GST) in India," Working Papers 22/385, National Institute of Public Finance and Policy.
    3. Mukherjee, Sacchidananda, 2021. "Revenue Shortfall and GST Compensation: An Assessment," Working Papers 21/356, National Institute of Public Finance and Policy.
    4. Ghosh, Anindita & Rangan, Divy & Chakraborty, Lekha, 2022. "Public Financial Management and Budgeting for Children: Evidence from Telangana, India," Working Papers 22/379, National Institute of Public Finance and Policy.
    5. Mathur, Ritu & Jaitli, Namrata & Amarnath HK,, 2022. "Estimating Child Development Index in India at the District Level - A Methodology," Working Papers 22/370, National Institute of Public Finance and Policy.
    6. Kamila, Anshuman, 2021. "Fiscal dominance in India: An empirical estimation," Working Papers 21/359, National Institute of Public Finance and Policy.
    7. Choudhury, Mita & Datta, Pritam, 2022. "The "Scissors Effect" of COVID 19 Pandemic on State Finances: Emerging Evidence on Expenditures," Working Papers 22/369, National Institute of Public Finance and Policy.
    8. Chakraborty, Lekha, 2022. "Covid19 and Unpaid Care Economy: Evidence on Fiscal Policy and Time Allocation in India," Working Papers 22/372, National Institute of Public Finance and Policy.
    9. Mathur, Ritu & Jaitli, Namrata & Amarnath HK,, 2022. "Child Development Index in India: Performance at District Level," Working Papers 22/371, National Institute of Public Finance and Policy.

    More about this item

    Keywords

    State Finances ; budget analysis ; fiscal management ; revenue mobilization ; public finance management ; public debt ; fiscal deficit ; revenue deficit ; India;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:npf:wpaper:22/386. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: S.Siva Chidambaram (email available below). General contact details of provider: http://www.nipfp.org.in .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.