New Delhi. State governments account for nearly two-thirds of total public expenditure, yet their financial condition receives limited attention in public discourse. A recent report seeks to bridge this gap by offering a clearer picture of the states’ fiscal health. The report reveals that in 2023–24, more than 60 percent of the states’ revenue receipts were spent on salaries, pensions, subsidies, and interest payments. Overall, a revenue deficit equivalent to 0.4 percent of the Gross State Domestic Product (GSDP) was recorded—indicating that borrowings are being used to fund routine expenses. This high level of committed expenditure constrains the states’ capacity to invest in developmental activities.
