Per Capita Expenditure from the State Budget

State Governments are responsible for delivering a range of public sector services, development programmes and schemes, and law and order, among other things. Hence, it is important to assess and compare their budgetary spending in relation to their populations. Per capita (per annum) expenditure from the State Budget has been calculated by dividing the State's total budgetary outlay in 2022-23 (BE) by its projected population. Comparing across States, we find that per capita expenditure varies significantly: from Rs. 67,773 per annum in Telangana to Rs. 19,031 per annum in Bihar. States’ per capita expenditure (per annum) depends on their fiscal capacity, which in turn depends on several factors such as their ability to raise taxes, sources of non-tax revenue, ability to borrow, transfers from the Centre and others.

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