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State’s fiscal deficit soars to Rs 4.93 trillion in FY16

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According to the second edition of Reserve Bank of India’s (RBI’s) statistical publication titled ‘Handbook of Statistics on States 2016-17’, total gross fiscal deficits of Indian states shot up to Rs 4,93,360 crore in fiscal 2016 from Rs 18,790 crore in FY1991.

Highlights of ‘Handbook of Statistics on States 2016-17’:

Rajasthan with Rs 67,350 crore deficit in FY16 and Uttar Pradesh with Rs 64,320 crore deficit in FY16 accounted for the largest chunks in the total gross fiscal deficits of Indian States.State's fiscal deficit soars to Rs 4.93 trillion in FY16

  • Maharashtra, one of the most urbanised and industrialised states had a deficit of Rs 1,020 crore in FY91 but the same jumped to Rs 37,950 crore in FY16 which is projected to improve to Rs 35,030 crore in FY17.
  • As per the data, total gross fiscal deficits of Indian states is projected to improve to Rs 4,49,520 crore as per the budget estimates of the states for fiscal 2017.
  • Gujarat, Andhra Pradesh, Tamil Nadu, Karnataka and Kerala are the states which will account for higher deficit in FY17 as compared to FY16.
  • Conversely for Bihar (on account of rising investments following better law and order situation) and West Bengal (despite having high debt levels), the deficit for FY17 is projected to improve as compared to FY16.

About ‘Handbook of Statistics on States 2016-17’:

This publication by Reserve Bank of India (RBI) covers statistical data on socio- demographics, state domestic product, agriculture, industry, infrastructure, banking and fiscal indicators across the states over a period ranging from 1950-51 to 2016-17.

  • It also offers data on state-wise availability of power, per capita availability of power, installed capacity of power, and power requirement, length of national highways, roads and state highways, and railheads.