NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Key highlights from the 2024-25 state budgets
Our analysis of 2024-25 budgets of 20 large states confirms that states have budgeted a fiscal deficit of 3.2% of gross domestic product in FY25 versus 3.5% of GDP in FY24RE and 2.8% of GDP each in FY22/FY23.
Gross market borrowings of all states are budgeted at Rs 10.9 trillion (3.3% of GDP) and net market borrowings are budgeted at Rs 8.0 trillion (2.4% of GDP) in FY25. According to the RBI’s data, actual state GMBs/NMBs stood at Rs 9.6 trillion/Rs 68 trillion (or 3.3%/2.3% of GDP) last year.
Outstanding debt of states is budgeted to grow 9.2% YoY, taking it to 28.3% of GDP in FY25, slightly lower than 28.6% of GDP in FY24RE. States’ debt was at a 15-year high of 31% of GDP in FY21, up from ~25% of GDP in the pre-Covid years.
Aggregate receipts of all states are budgeted to grow 9.0% YoY in FY25, following 16.8%/12.4% growth in FY24RE/FY23. Interestingly, the entire growth is likely to be led by states’ own receipts, as the Center’s support is expected to grow only 3% YoY in FY25. Total receipts are, thus, budgeted to ease slightly to 14.2% of GDP in FY25, down from an all-time high of 14.4% of GDP in FY24RE.
Total spending of states is budgeted to grow only 7.4% YoY in FY25, following 20.3%/12.7% growth in FY24RE/FY23. While revenue spending is budgeted to grow just 7.3% YoY, capital spending is budgeted to increase 8.1% YoY in FY25. Total spending is budgeted to fall to 17.3% of GDP in FY25 (second to the peak of 17.8% of GDP in FY24RE), though capital spending is budgeted to stay unchanged at ~3% of GDP.
Click on the attachment to read the full report:
Also Read: Capital Goods Q4 Results Preview - Execution, Margin To Be Key Monitorables: Motilal Oswal
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
![](https://images.assettype.com/bloombergquint/2024-09-02/qm6f9v1n/AL Aziz Plastics Pvt ltd - Ms of machinery inside the factory 270618 (4).jpeg.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
India Q1 GDP Review - Growth At 6.7% - Some Signs Of Cyclical Moderation: Nirmal Bang
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/import/eu5otceo_moodys_625x300_06_October_21.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Indian Companies Set To Spend $45-50 Billion In Capex Over Two Years, Says Moody’s
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2023-11/79157bec-25d7-47c9-b154-dc5eaf2e2bfb/KNR_Constructions_Ltd___Source_Company_website_.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
KNR Construction Q1 Results Review - Government Capex To Propel Growth: Nirmal Bang
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2022-05/d4be8da9-f74a-4c87-8f0d-7143b6dadc07/A_Vodafone_Idea_store_exterior___Photo_Snehal_Galbow_Source_BQ_Prime_.jpeg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Vodafone Idea Q1 Results Review - All Eyes On Tariff Hike Benefits: ICICI Securities
![timelogo](/images/amp-time.png)