How Can SNGs in India Avoid Debt Crises?

Abstract

Abstract This chapter attempts to provide useable recommendations for policymakers at the central and state levels to ensure states’ fiscal health . These measures are both at the revenue front and the expenditure front. Some of the measures include improving collections from Goods and Services Tax (GST) through better compliance and expanding GST coverage in future by including commodities which are outside the purview of the GST; and increasing collections from state excise, stamp duty and registration fees, and motor vehicle taxes. Moreover, the states can consider steps to augment their non-tax revenues, strengthening the municipal finances, curtailing inefficient subsidies, reducing losses from state power distribution companies, their state-level public enterprises, and leverage innovative sources of revenue, all of which are discussed in detail in this chapter.