| Foreword |
| List of Abbreviations |
| Chapter I: Overview |
| Chapter II: Fiscal Position of State Governments |
| 1. Introduction |
| 2. Accounts: 2017-18 |
| 3. Revised Estimates: 2018-19 |
| 4. Budget Estimates: 2019-20 |
| 5. Financing and Market Borrowing |
| 6. Outstanding Liabilities of State Governments |
| 7. Concluding Observations |
| Annex II.1: States’ Revenue: Variability and Predictability |
| Annex II.2: List of State Government Health Care Schemes |
| Chapter III: Debt: States’ Medium-Term Fiscal Challenge |
| 1. Introduction |
| 2. States’ Revenue |
| 2.1 Own Tax Revenue |
| 2.2 States’ Non-Tax Revenue |
| 2.3 Central Transfers |
| 3. States’ Liability Burden: Power Distribution |
| 3.1 Power Distribution Utilities |
| 3.2 Impact of Power Distribution Restructuring |
| 4. Guarantees |
| 5. Market Borrowings by States |
| 5.1 Liquidity of State Development Loans (SDLs) |
| 5.2 Pricing of SDLs |
| 5.3 Maturity Profile of SDLs |
| 5.4 Ownership Pattern of SDLs |
| 6. Debt Sustainability |
| 7. Concluding Observations |
| Annex III.1: Evolving Institutional Mechanism for GST |
| Annex III.2: Timeline of GST Council Meetings and Major Decisions |
| Annex III.3: Power Distribution – a Short History of Reforms and Government Programmes |
| Chapter IV: Way Forward |
| References |
| Explanatory Note on Data Sources and Methodology |
| e-STATES Database |
| LIST OF BOXES |
| II.1 Farm Loan Waivers and Income Support Schemes |
| II.2 Ayushman Bharat Programme |
| III.1 Tax Buoyancy at the State Level |
| III.2 Risks from Future Takeover of Losses under UDAY |
| III.3 Reissuances of SDLs and Liquidity |
| III.4 Elongation of Debt: Telangana Experience |
| III.5 Debt Sustainability of Indian States: An Empirical Assessment |
| LIST OF TABLES |
| II.1 Major Deficit Indicators: All States and Union Territories with Legislature |
| II.2 Aggregate Receipts of State Governments and UTs |
| II.3 Expenditure Pattern of State Governments and UTs |
| II.4 Fiscal Position of States |
| II.5 Deficit Indicators of State Governments – State-wise |
| II.6 Variation in Major Items |
| II.7 Composition of Expenditure on Social Services (Revenue and Capital Accounts) |
| II.8 Financing Pattern of Gross Fiscal Deficit |
| II.9 Market Borrowings of States |
| II.10 Maturity Profile of Outstanding State Government Securities |
| II.11 Investments of Surplus Cash Balances of State Governments |
| II.12 Investments in CSF/GRF by States |
| II.13 Outstanding Liabilities of State Governments and UTs |
| II.14 Composition of Outstanding Liabilities of State Governments |
| III.1 States’ Own Tax Revenue - Composition |
| III.2 Stamp Duty Collections |
| III.3 Non-Tax Revenue Composition |
| III.4 Trend in Central Transfers as a Ratio to Total Revenue and Expenditure of States |
| III.5 Tax Devolution: Changing Pattern |
| III.6 Trend in Special Levies (Cess and Surcharges) by the Central Government |
| III.7 FPI in State Development Loans: Limits and Investment |
| III.8 States’ Debt Sustainability - Indicator-based Analysis |
| III.9 Key Assumption for States DSA Model |
| III.10 Debt Sustainability Analysis - Key Assumption and Results |
| LIST OF CHARTS |
| II.1 Major Deficit Indicators |
| II.2 Fiscal Position of States: 2017-18 vis-à-vis 2016-17 |
| II.3 States’ Capital Outlay: Trends |
| II.4 Committed Expenditure |
| II.5 Gross Fiscal Deficit: State Governments |
| II.6 States-wise GFD as per cent to GSDP in 2019-20 (BE) |
| II.7 GST and Non-GST Collections |
| II.8 Social Sector Expenditure |
| II.9 Quality of Expenditure |
| II.10 Movement of SDL Yields |
| II.11 Maturity Profile of SDLs |
| II.12 Negative Carry of State Government Investments |
| II.13 States’ Outstanding Debt and Ratio of Interest Payments to Revenue Receipt |
| III.1 States’ Total Revenues - Key Constituents (2019-20) |
| III.2 States’ Total Revenue - Trend and Composition |
| III.3 States’ Own Tax Revenue and Central Transfers |
| III.4 State-wise Tax-GSDP ratio |
| III.5 SGST Collections by States - Annual and Monthly |
| III.6 Cross-Country Performance of Goods and Services Tax Post its Implementation |
| III.7 Weighted Average (Effective) GST Rate |
| III.8 Compensation Cess for States in 2017-18 and 2018-19 RE |
| III.9 Distribution of States’ Share of Taxes on Petroleum and Alcohol (as per cent of own tax revenue) |
| III.10 Trends in Non-Tax Revenues |
| III.11 Change in Non-tax Revenue, 2007-20 |
| III.12 Composition of States’ Revenue – Own vis-à-vis Central Transfers |
| III.13 Total transfers from Centre to States |
| III.14 Composition of Central Transfers to States |
| III.15 Power Sector Contribution to State Finances |
| III.16 State Power Distribution Utilities Cost, Capital Employed and Revenue- Stylised Evidence |
| III.17 Fiscal Impact of UDAY Programme |
| III.18 Financial performance of DISCOMs in Post-UDAY Period and Contributing Factors |
| III.19 State-wise Performance of DISCOMs Post UDAY: ACS- ARR Gap and AT & C Losses |
| III.20 Expected Fiscal Impact on States from UDAY |
| III.21 Outstanding Dues of Power Utilities to Central Power Sector Undertakings |
| III.22 Outstanding Guarantees |
| III.23 Sectoral Distribution of Outstanding Guarantees |
| III.24 State-wise Guarantees’ Growth and Guarantees Outstanding (per cent of GSDP) |
| III.25 SDLs Liquidity Metrics Compared to GoI Securities |
| III.26 SDLs Ownership Pattern and FPI Interest |
| III.27 Debt and Real GDP Growth |
| III.28 Debt Indicators: All states |
| III.29 Debt Dynamics of States |
| III.30 Cross-Country Subnational Government Debt (End-2018) |
| III.31 Contribution to Changes in States Debt to GDP Ratio |
| LIST OF APPENDIX TABLES FOR STATES’ BUDGETS 2019-20 |
| 1. Major Deficit Indicators of State Governments |
| 2. Devolution and Transfer of Resources from the Centre |
| 3. Development and Non-Development Expenditure: Aggregate |
| 4. Development Expenditure - Major Heads |
| 5. Non-Development Expenditure - Major Heads |
| 6. Development and Non-Development Expenditure |
| 7. Composition of Social Sector Expenditure |
| 8. Decomposition of Gross Fiscal Deficit |
| 9. Financing of Gross Fiscal Deficit |
| 10. Financing of Gross Fiscal Deficit - As Per cent to Total |
| 11. Composition of Outstanding Liabilities of State Governments |
| 12. Composition of Outstanding Liabilities of State Governments - As Proportion to Total |
| 13. State Government Market Borrowings |
| LIST OF STATEMENTS AND APPENDICES FOR STATES’ BUDGETS 2019-20 |
| LIST OF STATEMENTS |
| 1. Major Fiscal Indicators |
| 2. Revenue Deficit/Surplus |
| 3. Gross Fiscal Deficit/Surplus |
| 4. Decomposition of Gross Fiscal Deficit |
| 5. Financing of Gross Fiscal Deficit – 2017-18 (Accounts) |
| 6. Financing of Gross Fiscal Deficit – As per cent to Total – 2017-18 (Accounts) |
| 7. Financing of Gross Fiscal Deficit – 2018-19 (RE) |
| 8. Financing of Gross Fiscal Deficit – As per cent to Total – 2018-19 (RE) |
| 9. Financing of Gross Fiscal Deficit – 2019-20 (BE) |
| 10. Financing of Gross Fiscal Deficit – As per cent to Total – 2019-20 (BE) |
| 11. Development Expenditure |
| 12. Non-Development Expenditure |
| 13. Interest Payments |
| 14. Tax Revenue |
| 15. Non-Tax Revenue |
| 16. Loans from the Centre |
| 17. Devolution and Transfer of Resources from the Centre |
| 18. Composition of Outstanding Liabilities |
| 19. Total Outstanding Liabilities of State Governments |
| 20. Total Outstanding Liabilities - As percentage of GSDP |
| 21. Market Borrowings of State Governments |
| 22. State Government Market Loans |
| 23. Maturity Profile of Outstanding State Government Securities |
| 24. Maturity Profile of Outstanding State Government Securities - As Percentage to Total |
| 25. Investment Outstanding in Treasury Bills |
| 26. Expenditure on Education - As Ratio to Aggregate Expenditure |
| 27. Expenditure on Medical and Public Health and Family Welfare - As Ratio to Aggregate Expenditure |
| 28. Outstanding Guarantees of State Governments |
| 29. Expenditure on Wages and Salaries |
| 30. Expenditure on Operations and Maintenance |
| 31. Social Sector Expenditure |
| 32. Social Sector Expenditure to Total Disbursement |
| 33. Revenue Receipts of State Governments and UTs |
| 34. Revenue Expenditure of State Governments and UTs |
| 35. Development Expenditure: Select Indicators |
| APPENDICES |
| I. Revenue Receipts of States and Union Territories with Legislature |
| II. Revenue Expenditure of States and Union Territories with Legislature |
| III. Capital Receipts of States and Union Territories with Legislature |
| IV. Capital Expenditure of States and Union Territories with Legislature |
| NOTES TO APPENDICES |