State fiscal deficit as a percent of GDP of India FY 2005-2022
For the financial year 2022, according to the budget estimate, the fiscal deficit for states as a percent of GDP was 3.7 percent. However, to overcome the crises caused by the COVID-19 pandemic, an economic package to the tune of 23 billion U.S. dollars was sanctioned. This led to a rise of 80 basis points. Thereby speculations rose related to an increase in the fiscal deficit, similar to what occurred during the 2008 financial crises.
