States of comfort

In an environment where there is gloom all around, the fiscal health of the states provides some room for comfort. This is particularly important as the Union Budget has shown a significant slippage in not just adhering to the Finance Commission targets, but even to those committed by itself in the medium-term fiscal plan (MTFP). There has been a gloom on the fiscal front ever since the Union Budget was presented and we have seen much evidence of the commitment to contain subsidies, excepting the recent episode of increasing the price of petrol.

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