Driven By Robust GST Collections, State Revenues To Grow By 8 To 10 Per Cent: CRISIL Ratings Report

CRISIL Ratings report suggests that the revenues of the top 18 states contributing 90 per cent to India's Gross State Domestic Product (GSDP) will grow at a rate of 8 to 10 per cent in the ongoing financial year.

The revenue of these states grew by 7 per cent in the last financial year but the growth is expected to be more this time due to robust Goods and Service Tax (GST) collections.

Moreover, the Centre will also be devolving finances to the states, while the revenue from liquor sales is expected to be stable by contributing 10 per cent to states' revenues.

With the devolution of 12 to 13 per cent more taxes from the Centre and 4 to 5 per cent more grants from the Centre, as stated in the Budget, the state revenues will witness greater rise.

CRISIL Ratings expects real Gross Domestic Product (GDP) to grow by 6.8 per cent in this financial year. Meanwhile, states will also need to expand their own revenue sources for stability.