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How the pandemic crunched state budgets in India

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spending plan for fiscal 2022 represents only a modest hike over the previous fiscal year but the plan still involves an ambitious borrowing program that will push the fiscal deficit levels much beyond earlier thresholds.In contrast to the expansionary stance of the Union government, state governments seem to have taken a more conservative approach in planning their budgets this year.

A Mint analysis of the budget numbers of 19 major states show that state government borrowing is expected to be relatively muted compared to central borrowing.

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