ICRA's Public Finance Ratings cover sovereign and sub-sovereign entities, State governments,and local bodies like municipal corporations, municipal councils and area development agencies. While the ratings assigned, are relative to that of the Union government, which is taken as highest safety, the performance of the State government concerned is benchmarked against that of the universe of major States. ICRA's primary focus being forward looking, we emphasises fiscal management and policy objectives of the government in the coming years and the possible impact of the same on future revenues and expenditure, the budget plan, likely capital expenditure, and future borrowing needs. ICRA's process for assigning State Government Ratings involves analysis of the underlying economy of the State and a detailed study of state finances including budgetary and off-budgetary transactions. The analysis includes comparison with respect to peer States on socio-economic parameters such as social development indicators, composition of GSDP, sectoral rates of growth, income levels, and investment activity. Besides, ICRA's temporal and peer group analysis of State finances covers quality and stability of revenues, expenditure management, analysis of debt outstanding, liquidity position, and quality of governance.