Even as there is so much talk about the Centre’s inability to pay GST dues to the states and the states suffering due to the foregoing of their revenue generation ability, it is a sobering realization that barely fingerful of states were self-sufficient in terms of revenue generation at the time Goods and Services Tax (GST) rolled out across India. Several states that gained thanks to the GST are yet to address the issue of fiscal mismanagement, and continue to borrow for expenditures that they cannot afford. Yawning Deficits, Off-Budget Borrowings  A Reserve Bank of India (RBI) analysis of state budgets between 2017-18 and 2019-20 showed marginal improvement by 2019-20 in the cumulative state revenue surpluses. What these numbers do not reveal however is the continued profligacy by large states, some of whom are very vocal about not receiving dues. An analysis of these states’ cumulative revenue deficits averaged ₹99,879 crore for the mentioned years. In contrast, ₹1,65,302 crore was released by the Centre as Goods and Services Tax (GST) compensation to states/Union Territories for the financial year 2019-20. Table 1: Revenue Deficits of Select States State Revenue Deficit (₹crore) 2017-18 Revenue Deficit (₹crore) 2018-19 Revenue Deficit (₹crore) 2019-20 (Budgetary … Continue reading Time for States to be Aatmanirbhar