1 year, 5 months ago
Data | The risk of small States’ heavy reliance on the Union government
The HinduThe fiscal situation of India’s States has garnered significant attention in recent times. For three States — Mizoram, Sikkim and Tripura — the revenue receipts have grown slower than the State GSDP implying limited fiscal space to operate. While the share of Union transfers in the revenue receipts of all States combined hovers between 40% and 50%, the ratio is quite large for the small States. Except for Goa, the Union’s share in all the other small States’ revenue receipts is more than 60%. Click to subscribe to our Data newsletter The limited capacity of small States to generate their own revenues results in a heavy dependence on the Union government, exposing the States to various vulnerabilities.
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