Key Findings from 2025-26 Budgets of Five Big States
- States with Revenue Surplus: Uttar Pradesh, Gujarat, and Odisha
- States with Revenue Deficit: Rajasthan and West Bengal
- Debt Wise Concerns: These two states, Rajasthan and West Bengal, carry high sovereign debt and fiscal deficits.
- Capital Outlay: Odisha and Uttar Pradesh have the highest capital outlay in relation to the size of their economies.
Uttar Pradesh: Balancing Growth & Welfare
- The largest economy of the five states but lowest per capita income
- Despite a large welfare focus (with 92,000 jobs, salary hikes, and scooters for women students), it maintains a revenue surplus
- 43% of revenue receipts come from own taxes
- Debt to GSDP Ratio ~30%
Gujarat: Strong Fiscal Position
- Most prosperous state among the five, per capita income three times that of Uttar Pradesh
- Self sufficient revenue generation (over 60% from its own tax sources)
- Lowest debt to GSDP ratio (~15%) of all five states
- Moderate capital outlay relative to GSDP
Odisha: High Capital Investment, Low Debt
- Revenue surplus maintained in the face of increased spending
- Central assistance is received (only 28% of revenue from own taxes)
- High capital outlay (6.1% of GSDP) among the highest
- Lowest debt to GSDP ratio (12.7%)
West Bengal: Fiscal Struggles Continue
- It is a revenue deficit state that holds high sovereign debt (~38% of GSDP).
- Very low capital outlay relative to total expenditure (1.94% of GSDP).
- Own tax revenue stagnated (~42% of revenue receipts).
Rajasthan: Rising Debt, Low Investment
- Fiscal deficit crosses limits (more than 3.5% of GSDP).
- Debt to GSDP ratio at 36.5% (second highest following West Bengal).
- Lowest capital outlay in relation to total expenditure.
Gujarat and Odisha have the strongest fiscal positions; both states are with high own tax revenue and manageable debt. UP is maintaining revenue surplus, yet a lot of dependency on central funds.
WB and Rajasthan are confronted with severe debts and deficits, which impede any possibilities for their investment potentials.
