Financial health of States shows improvement
Wednesday, 30 March 2011, 17:46 Hrs
Mumbai: With improvement in economic growth, the financial position of the states has started showing improvement and they are moving towards the path of fiscal consolidation, says a RBI report. "The budgetary position of States in 2010-11 indicated a turnaround from the expansionary fiscal stance in 2008-09 and 2009-10 to a fiscal consolidation path in 2010-11," said State Finances:A Study of Budgets of 2010-11, released by RBI. An improvement in State finances is evident with a majority of the States budgeting either a revenue surplus or a lower revenue deficit in 2010-11 (Budget Estimate) as compared with 2009-10 (Revised Estimate), it said. At a consolidated level, the revenue deficit is placed lower at 0.3 per cent of GDP during 2010-11 (Budget Estimate) as against 0.7 per cent in 2009-10 (Revised Estimate) reflecting compression in revenue expenditure.