RBI: Fiscal Deficit of States Soars to Rs 4.93 trillion in FY16
According to ‘Handbook of Statistics on States 2016-17‘, the gross fiscal deficits of all the states have soared to Rs 4,93,360 crore in fiscal 2016 from Rs 18,790 crore in FY1991. This is the second edition of RBI’s statistical publication.
‘Handbook of Statistics on States 2016-17 follows a ‘one-indicator-one table’ approach. It covers all sub-national statistics on socio- demographics, state domestic product, agriculture, industry, infrastructure, banking and other fiscal indicators across the states during the period 1950-51 to 2016-17.
The handbook also provides data on the state-wise availability of power, per capita availability of power, installed capacity of power, and power requirement, the length of national highways, roads and state highways, and railheads.
Uttar Pradesh had a fiscal deficit of Rs 3,070 crore in FY91, which has soared to Rs 64,320 crore in FY16. It is projected to improve to Rs 49,960 crore in FY17.
Rajasthan had a fiscal deficit of Rs 540 crore in FY91, which has soared to Rs 67,350 crore in FY16. However, the gross fiscal deficit is projected to decline to Rs 40,530 crore in FY17.
Maharashtra has a fiscal deficit of Rs 37,950 crore in FY16 which is projected to soar to Rs 35,030 crore in FY17.
Gujarat which has seen rapid industrialisation in the period of data analysis has got its fiscal deficit increased from Rs 1,800 crore in FY91 to Rs 22,170 crore in FY16 and the deficit is projected to further deteriorate in FY17 to Rs 24,610 crore. In fact from FY01, Gujarat has not shown improvement in its macro numbers even for a single year.
Andhra Pradesh has a deficit of Rs 17,000 crore in FY16 which is set to increase to Rs 20,500 crore in FY17. Tamil Nadu is also projected to have a higher deficit at Rs 40,530 crore in FY17. Karnataka is also estimated to post higher deficit in FY17 at Rs 25,660 crore.
Bihar which has a fiscal deficit of Rs 28,510 crore in FY16 is slated to improve its finances with the fiscal deficit of Rs 16,010 crore in FY17. Similarly, West Bengal is also slated to improve its fiscal deficit to Rs 19,360 crore in FY17 .
Fiscal deficit is the difference between total expenditure and total revenue receipts including recoveries of loans and other receipts.
Month: Current Affairs - June, 2017