India's State Government Budgets

INDIA'S STATE GOVERNMENT BUDGETS

With the Indian govt presenting its Budget, now the states will be presenting their Budgets. Let us look at last year's Budgets of four selected states - Gujarat, Maharashtra, Karnataka and Tamil Nadu.

The four basic components of the Budget are:

1. Revenue receipts = Good income (Taxes)

2. Capital receipts = Bad income (Loans)

3. Revenue expenditure = Bad spending (Govt salaries)

4. Capital expenditure = Good spending (Infrastructure)

Let us look at these four components for the four states (as a % of their GDP):

1. Good income - Maharashtra is the best with 14.3% and Gujarat (surprisingly) is the worst with 11.2%.

2. Bad income - Gujarat is the best with 3.1% and Tamil Nadu is the worst with 6.7%.

3. Bad spending - Gujarat is the best with 11.1% and Tamil Nadu is the worst with 15.8%.

4. Good spending - Karnataka is the best with 2.7% and Gujarat (surprisingly) is the worst with 2.1%.