Given the central government is targeting a fiscal deficit of 6.8 per cent of gross domestic product (GDP) this year, it comes as no surprise that the fiscal condition in states is also under stress.

       However, data from the recently released state finances report by the Reserve Bank of India (RBI) does indicate that states are moving faster to improve their fiscal health. Although the fiscal deficit will remain above the 3 per cent mark in 2021-22, states are expecting a 1 per cent decline in fiscal deficit (as a per cent of their gross state domestic product) from 4.7 per cent in ...