States Rank Better ...

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[Aggressive push to reforms, coupled with introduction of VAT, has put states on a better footing than the Centre in terms of managing finances, the Economic Survey said today. &quot;The fiscal situation of the states has shown a considerable improvement, which in fact is better relative to the performance of the Central Government, post-FRBM (Fiscal Responsibility and Budget Management, Act 2003),&quot; the report card on the economy said. The states have not only succeeded in bridging the gap between tax collection and expenditure, but have created a surplus of around Rs 12,000 crore this fiscal, it noted. The document pointed out that notwithstanding the variation across the states, the consolidated revenue balance is budgeted to show a surplus of 0.3 per cent of GDP in 2007-08. In 2002-03, the states had reported a revenue deficit of Rs 57,179 crore and were finding it difficult to pay the salary of their employees and interest payment liabilities. Meanwhile, the Survey noted that due to buoyancy in tax collections, the Centre is likely to meet the fiscal deficit target of three per cent of GDP in 2008-09. However, bringing down revenue deficit to zero remained a challenge, it added. With total expenditure rising by 23.6 per cent, the Centre's revenue deficit is estimated at Rs 71,478 crore for 2007-08, it stated. The enactment of fiscal responsibility legislation by 26 states, barring West Bengal and Sikkim, has moved the rule-based programme of fiscal reforms ahead. (PTI)