Key Points
Mumbai: States' finances improved in FY23, and there is a need to look at asset monetisation to help garner non-tax revenues, a Reserve Bank report said on Monday..
In the report on state budgets, which is done annually, the Reserve Bank said road, transport and power sectors hold considerable potential where the states can undertake asset sales...
"States need to scale up their initiatives for asset monetisation in order to increase non-tax revenue..
States can also look at shoring up the non-tax revenues through revising user charges on electricity, water and other public services, royalties and premiums from mining, and better financial management of their PSUs, the report said...
States' fiscal deficit improved for the second consecutive year in FY23, with the gross fiscal deficit getting contained at 2.8 per cent, the report said, adding that in FY24, it is set to come at 3.1 per cent of GDP...
