No GST compensation: Will the Centre find another way to give states money?

It is also important to see which states can finance a reasonable portion of their regular expenditure with their own revenue

At the end of July, the Centre will have paid the final instalment of the GST compensation that is due to the states. With that, the compensation covenant will end, leaving the states without this substantial source of revenue.

By looking at their finances, it is clear that a few are under great fiscal stress already, which will be significantly exacerbated once the GST compensation transfers end.

Over the five years of GST, the Centre would have transferred more than Rs 8 trillion to the states as GST compensation. The cessation of this payout will affect all the states, but