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Opinion / The Economic Times

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View: Why larger and more populous states gradually losing their fiscal strength

A 2013-14 to 2022-23 CAG analysis of state finances paints a sobering picture. 10 most populous states - UP, Maharashtra, Bihar, West Bengal, MP, Tamil Nadu, Rajasthan, Karnataka, Gujarat and Andhra Pradesh - account for about 3/4th of India's population. Yet, in 2022-23, their combined share in the total revenue receipts of all states stood at 68.9%, down from 74.4% a decade earlier. This 6-point decline signals a weakening of fiscal capacity where it should have been strongest.

2 Dec 2025 11:24 pm