What is State Government Finances?
State Government Finances refer to the financial resources, expenditures, and overall fiscal management of individual state governments within a federal system like India. This includes revenue generation, expenditure allocation, borrowing, and debt management.
Historical Background
Historically, states relied heavily on central government grants. Post-independence, various Finance Commissions have recommended principles for revenue sharing between the Union and States. The GST implementation in 2017 significantly altered the revenue structure of states.