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India's state governments to face 6.3% decrease in central grants-in-aid in FY25, causing financial strain.
India's state governments are projected to face increased financial strain in FY25, with a 6.3% decrease in central grants-in-aid, contrasting sharply with a 13.9% growth in FY24.
States like Meghalaya and Assam, reliant on these funds, are particularly affected.
Additionally, the growth in tax devolution from the Centre is expected to slow to 11%.
Overall, combined central transfers will rise modestly by 4.5%, necessitating stricter financial management for the states.
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Los gobiernos estatales de la India enfrentarán una disminución del 6,3% en las subvenciones centrales en el año fiscal 25, causando tensión financiera.