B.6. State Finance Concerns
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Low Non-Tax Revenues Collection |
Non-Tax Revenues remained around 1 per cent of GDP in the last 10 years compared to a ratio of 10 % or more in countries like Singapore, Egypt and Iran. |
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Reduced Development Expenditure |
The allocations for education, sports, art and culture, relief on account of natural calamities, urban development, agriculture and allied activities, and rural development were reduced. |
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Old Pension Scheme (OPS) |
Return to the OPS would exert a huge burden on State finances and restrict their capacity to undertake growth-enhancing capital expenditures. o If all the State governments revert to OPS from the National Pension System (NPS), the cumulative fiscal burden could be as high as 4.5 times that of NPS. • |
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Precarious Fiscal Situation |
Any further provision of non-merit goods and services, subsidies, transfers and guarantees will render their fiscal situation precarious and disrupt the overall fiscal consolidation achieved in the last two years. |
[Image: Key Finding From State Finance Annual Reports]