State Finances in Transition: An Analysis of Revenue Receipts and Fiscal Dynamics in India During the XV Finance Commission Period
This report examines how state finances in India have evolved and fiscal challenges they face ahead of the XVI Finance Commission. Covering 31 States and UTs with legislatures, it analyses trends in own revenues, tax devolution, grants-in-aid, and borrowings from FY 20-21 to FY 25-26 and insights from State consultations with the XVI Finance Commission. The report highlights widening fiscal disparities, shifting dependence on borrowings for financing across states, and changing patterns in Union transfers, offering insights to strengthen fiscal autonomy and equity across States.
