Popular luxury plans are pushing the state’s financing to the edge

Countries are expected to spend approximately 2 % of total local products (GSDP) or 6.4 rupees ($ 76.67 billion) on social welfare plans in the current fiscal year, and this is more than their spending in some recent years. Spending on social welfare increased with the states offered various plans such as the monthly income of women and free travel on the work of the state. These expenses are expected to remain high in the near future, given the obligations made by countries in the period before the association and public elections in recent years.

This rise in spending on social welfare plans was costly. A report issued by the classification agency said, after analyzing the budgets of the 18 most important states – represented by about 90 % of the total GSDP, which represents about 90 % of the total GSDP, after analyzing the best of the 18 states – representing about 90 % of the total GSDP, which represents about 90 % of the total GSDP, after the state’s ability to spend countries to spend on the creation of the infrastructure and other of Development works.

Social welfare spending is a major component of the center’s budgets and states. The center is largely spent on a full range of social welfare plans, including the national Mahatma Rural Employment Employment scheme (MGNREGS), Jal Jevan Mission, PM KISAN, PMS Yojna and PM Poshan. MGNREGS receives the highest customization. For the current fiscal year, the center is allocated 86,000 rupees ($ 10 billion). Jal Jevan Mission, PM KISAN, PMS Yojna and PM Poshan together get more than 2.30 rupees ($ 26.90 billion). General spending on social welfare plans in the center is higher.

The classification agency has warned that state spending on social welfare plans will lead to an increase in revenue deficit and limits its ability to implement higher capital expenses. As a percentage of GSDP, expenditures on these plans were at a similar level in the last finance, and reached 1.4-1.6 % between the two years 2019 and 2024.

The states have risen to spend revenue on the plans of women, children, employment and backward classes in the period before general elections and assembly. Several states have introduced income transfer plans to women, as the target group gets 1000-2000 rupees per month. Some states have provided free travel to women on government buses.

“The social luxury expenditures in 2025 and 2026 are estimated at an increase of about 2.3 rupees (26.90 billion dollars) of direct allocations (concluded), the aforementioned obligations are almost 1.3 rupees rupees (15.17 billion dollars) is primarily the financial/ medical assistance of backwards and retirement pensions For social security to choose concentration groups, which supports the expenses needed for social and economic development.

The increase in social welfare expenditures over the 2025 and 2026 financial years as unified throughout the states with about 50 % of the countries that have been analyzed are expected to see a significant increase in these expenses while it is expected that he will see these expenses at relatively stable levels or see an increase in an increase.

With social welfare expenses significantly, the total revenue expenditures are listed in the budget to record the annual compound growth rate (CAGR) from 13 to 14 % between the two financial years 2025 and 2026, according to Chrisiel. In comparison, the growth of revenue receipts was slower-about 6.6 % in the last fiscal year and is expected to increase 6-8 % in this fiscal year. This inconsistency in the growth of spending and revenue will ensure a high revenue deficit.

“The increase in the revenue deficit usually leads to state governments that reduce capital expenses to maintain their financial stability. The last financial, capital expenses grew by approximately 6 % on an annual basis (VS and CAGR is 11 % over a period of 5 years, ending from finance 2024), according to the elderly said in the capital approximately 90 %. That has a higher effect and can stimulate the increase in the economy.

While allocating funds to social welfare plans is very important to social and economic development, increasing such allocations without a similar increase in revenue receipts can affect the features of credit for the states in the long run, which confirms the importance of maintaining financial wisdom.