The budget estimates (BE) for FY2027 of 18 states reveal that their revenue receipts, revenue expenditure and capital expenditure are expected to rise by 23.5%, 17.9% and 29.3%, respectively, from the amounts included in the FY2026 provisional actuals^ (PA) released by the Comptroller and Auditor General of India (CAG). Based on an early assessment of various domestic and global factors, including the impact of the West Asia crisis and a potential El Nino, ICRA tentatively projects the actual revenue receipts of states in FY2027 at 88-90% of the budgeted Rs. 49.1 trillion.

EXHIBIT: Trends in revenue receipts of 18 states

Source: State Budgets; CAG; ICRA Research