Indian states have exhibited improved finances, with the combined gross fiscal deficit (GFD) contained at 2.8% of GDP in the fiscal year 2022-23, states the Reserve Bank of India’s report on state finances. The reduction in deficit is attributed to a decrease in revenue deficit while maintaining robust capital outlays. Southern states like Andhra Pradesh, Tamil Nadu, Karnataka, and Kerala have seen improvements in their revised fiscal deficit figures for FY23. The implementation of the goods and services tax (GST) contributed to increased tax buoyancy, but outstanding liabilities remain a concern for some states. The fiscal outlook remains favorable overall.
ndian States Show Improved Finances, Control Combined Fiscal Deficit
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