What is the current state of finances in the Indian states? What long-term measures can be taken to strengthen the financial health of states? (Answer in 150 words)

Current state of finances in Indian states a) Positives: (1) Improved capital expenditure in state due to 50-year loans extended by center (2) Improved business environment in states like Madhya Pradesh and Uttar Pradesh improving revenue. (3) Fiscal responsibility and budget management target FRBM & targets benchmarks for fiscal spending. (4) Better welfare outcomes and economic output in states like Haryana, HP, Jharkhand b) Negatives: (1) Increased spending on population impacting fiscal health. Example: Free bus rides for women in Karnataka (2) Indebted ness on the side in states like Punjab and Kerala (3) Loss of revenue especially post the GST regime (4) Increasing revenue expenditure burden for salaries PFRM act (Effectively tightening on FRBM act Easing tightening or Efficient government outlay Ease of Long term measures: De-budgeting Government released pension Nudge by central government to Sustainably capped welfare Hence for cal health of Indian state need to be improved as per paper guideline of NITI Aayog state of FRBM