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State of state Finances 2025 Report
November 13 , 2025
15 hrs 0 min
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- States collectively maintained their Gross Fiscal Deficit (GFD) close to the FRBM (Fiscal Responsibility and Budget Management) target of 3% of GDP.
- For FY 2024-25, the GFD is estimated at 3.2% of GDP, which is within a manageable range.
- In 2024-25, Capital expenditure by states has reached 3.1% of GDP.
- In 2023-24, states collectively spent 62% of their revenue receipts on interest payments, salaries, pensions, and subsidies.
- The outstanding debt level of states (28.5% of GDP) remains significantly above the FRBM target of 20%.
- Except for Gujarat, Maharashtra, and Odisha, most states exceed this limit.
- States like Punjab, Kerala, and West Bengal have significantly high debt levels.
- As of 2025–26, 12 states have launched unconditional cash transfer schemes for women.
- On aggregate, states have estimated to raise 58% of revenue receipts from own-tax and own non-tax sources in 2025-26.
- In 2025-26, own-tax revenue is estimated to be higher than 50% of revenue receipts in 10 states.
- These include Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Punjab, Telangana, Tamil Nadu, and Delhi.
- States with a higher share of subsidy expenditure include Punjab (21% of revenue receipts), Tamil Nadu (14%), Rajasthan (14%), Karnataka (14%), and Gujarat (13%).
- Tamil Nadu spent 60% of its total subsidy budget on bus transport (12%), subsidised electricity tariff (20%), and support under the PDS scheme (28%).
- It was released by PRS Legislative research.
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