Is Gehlot destroying Rajasthan’s economy through freebies? Data shows this isn’t the case

Posted on:
Key Points

However, an analysis of Rajasthans finances, comparing it to other states and also its own history, shows that it is in a relatively strong position, and that its fiscal health has improved under Gehlot...

However, since the pandemic, Rajasthans subsidy expenditure has risen while it has fallen for all states taken together.. Officials in the Rajasthan government ThePrint spoke to say that all of this is part of a concerted strategy by the state government to provide a demand-side push by leaving people with more money to spend..

During the pandemic year of 2020-21, Rajasthans fiscal deficit when expenditure is more than revenue in a fiscal year as a percentage of its gross state domestic product (GSDP) spiked to 5.9 percent from 3.8 percent in the previous year, a 2.1 percentage point increase in one year..

What is more notable, however, is that Rajasthans own tax and own non-tax revenue has recently been forming a higher share of its overall revenue receipts than what has been the case for the other states on average...

After the pandemic, however, the available data shows Rajasthans subsidy expenditure increased its share to 10.5 percent in 2021-22 while on average states were able to reduce theirs to 9.7 percent...

You might be interested in

States spending better, with many prioritising capex. But those dependent on Centre may face stress

10, Nov, 23

Capital expenditure of 23 states grew by 52% in April-September 2023 over same period last yr, but discontinuation of GST compensation, tapering of grants could weigh down some states.