What is the fiscal outlook for states in FY24 according to the Reserve Bank of India
The Reserve Bank of India states that the overall fiscal outlook for states in FY24 remains favourable.
According to the Reserve Bank of India, the fiscal outlook for states in FY24 remains favorable. Here are the key points regarding this outlook:
- States' revenue collections are likely to improve due to the recovery in economic activity and increased tax compliance.
- Higher Goods and Services Tax (GST) collections are expected as economic growth picks up, leading to increased revenue for states.
- Efforts to enhance tax administration and rationalize tax rates are likely to contribute to improved revenue mobilization.
- States' expenditure management is expected to remain prudent, with a focus on maintaining fiscal discipline.
- Steps taken to control non-essential spending and promote efficient utilization of resources are expected to contribute to improved fiscal health.
- The improved fiscal outlook will enable states to further invest in infrastructure development, social welfare programs, and other developmental initiatives.
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