💨 Abstract

In the Indian federal system, states are responsible for providing public services and subsidies to citizens. However, a recent study shows that persistent revenue deficits and shrinking fiscal space have made subsidies unsustainable, particularly post-pandemic. States like Punjab and Andhra Pradesh, with revenue deficits, spend over 20% of their revenue on subsidies, leaving little room for developmental spending.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖