Data Sources
This Study is based on the receipts and
expenditure data presented in the budget
documents of 28 State Governments. Data in
respect of two Union Territories (UTs) with
legislature, viz., National Capital Territory of Delhi
(NCT Delhi) and Puducherry are provided
separately as memo item in all statements. The
analysis conforms to the data presented in State
budgets and the accounting classification thereof.
The detailed Appendices are based on the
classification of receipts and expenditure of
individual States/UTs into revenue and capital
accounts. Revenue expenditure and capital
expenditure are further bifurcated into ‘Plan’ and
‘Non-Plan’. Some supplementary information
regarding institutional reforms, level of guarantees
(contingent liabilities), expenditure on ‘wages and
salaries’ and ‘operations and maintenance’ are
obtained from the State Governments. Information
on Additional Resource Mobilisation (ARM) is not
presented in the Study. Information received from
the Planning Commission relating to State-wise
plan outlays are also incorporated in the Study.
Data on debt relief to State Governments based
on recommendations of Twelfth Finance
Commission (Twelfth FC) and the outstanding
State-wise loans under the National Small Savings
Fund have been obtained from the Ministry of
Finance, Government of India. The outstanding
State-wise central loans have been sourced from
the Union Finance Accounts. Besides, several
items of data including Ways and Means
Advances (WMA)/ Overdraft (OD), market
borrowings, investment of State Governments in
Central Government securities and maturity profile
of the State Development Loans (SDLs) have
been taken from the Reserve Bank records.
The data provided in Appendix III (capital
receipts) and Appendix IV (capital expenditure)
are on a gross basis for all items, including Public
Accounts. Additionally, total capital receipts taking public accounts on a net basis are also given in
Appendix III to have comparable data with those
of the previous years. Appendix IV gives broad
total of capital expenditure exclusive of public
accounts. The capital receipts provided in
Appendix tables (consolidated) and statements
(State-wise) and used in the analysis include
public accounts on a net basis while public
accounts are excluded from the respective capital
expenditure. The ‘All States’ totals in the Study
and national averages pertain to 28 State
Governments, excluding NCT Delhi and
Puducherry. The data for Gross State Domestic
Product (GSDP) for each State have been sourced
from the Central Statistics Office (CSO). This is
supplemented by information received from the
respective State Governments and GSDP
estimates used in the budget documents of the
State Governments. Wherever GSDP data are not
available, the data are estimated based on the
previous three years’ annual average growth rate.
Data on GDP are at current market prices obtained
from CSO. The ratios to GSDP/GDP are worked
out based on latest available GSDP/GDP
estimates. Percentage variation worked out in
Appendix tables and statements may differ due
to rounding-off of figures.
Methodology
The analysis of the expenditure data is
disaggregated into development and nondevelopment
expenditure. All expenditure relating
to Revenue Account, Capital Outlay and Loans
and Advances are categorised into social services,
economic services and general services. Broadly,
the social and economic services constitute
development expenditure, while expenditure on
general services is treated as non-development
expenditure. Thus, the development expenditure
includes the development components of revenue
expenditure, capital outlay and loans and
advances by the State Governments. The social sector expenditure includes expenditure on social
services, rural development, and food storage and
warehousing under revenue expenditure, capital
outlay and loans and advances by the State
Governments. Capital outlay includes both
development and non-development capital outlay.
The ‘overall deficit/surplus’ (conventional deficit/
surplus) used in the analysis is equal to the sum
of cash deficit/surplus (difference between the
closing balance and opening balance), increase/
decrease in cash balance investment account and
the increase/decrease in WMAs extended by the
Reserve Bank.
Methodology for Debt Statistics
The Reserve Bank in its Study of 2005-06
budgets had compiled a data series on
outstanding liabilities of State Governments since
1990-91. In the 2006-07 Study, a revised series
of outstanding liabilities was published by
including data on reserve funds, deposits and
advances and contingency funds of State Governments. In the 2007-08 Study, a revised data
series on outstanding liabilities of State
Governments was published from 2003-04
onwards based on the Combined Finance and
Revenue Accounts of Union and State
Governments, Reserve Bank records, data
received from the Ministry of Finance
(Government of India), Union Finance Accounts
(Controller General of Accounts) and the budget
documents of the State Governments. The present
Study follows the same methodology for
compilation of outstanding liabilities as given in
2007-08 Study and uses the same data sources.
The data provided in Appendix table 19 and 20
and Statements 26 to 28 on debt position of States
are provisional. Based on the State-wise market
loans (Statement 32), the maturity profile of
outstanding State Government securities is
provided in Statements 34 and 35. These
Statements also incorporate the appropriation of
liability of the three bifurcated States to their
respective newly formed States on the basis of
Government of India notifications.
Note : State-wise data on major fiscal indicators for the period 1980-81 to 2009-10 (BE) and State-wise
detailed data on the transactions in the revenue and capital account for the period 1990-91 to
2009-10 (BE) were presented in “Handbook of Statistics on State Government Finances” published
by the Reserve Bank in July 2010. This Handbook, containing data on 28 States and two UTs,
was released in three versions, viz., printed, CD and web-based (www.rbi.org.in) version. While
the printed version covers data on major fiscal indicators for the period 1990-91 to 2009-10 (BE)
and State-wise detailed data on the transactions in the revenue and capital account for the
period 2002-03 to 2009-10 (BE), the CD and web-based version is more comprehensive than
printed version covering data from 1980-81 onwards on major fiscal indicators and State-wise
detailed data on the transactions in the revenue and capital account from 1990-91 onwards. CD
version also incorporates intelligent search features. The issues of publication ‘State Finances:
A Study of Budgets’ published since 2001-02 are available on the Reserve Bank’s website. |