Budget Credibility of States

Budget Credibility refers to the government’s ability to meet its expenditure and revenue targets. A government may end up falling short of its targets, or it may overshoot them. When there is a gap between the expenditure that was planned and what was eventually carried out, it may suggest a change in priorities, or issues in planning and implementation. Sometimes gaps may result from external shocks and crises, causing budgets to be reprioritised, or spending to be curtailed or increased. Over time, a lack of budget credibility or persisting gaps between estimates and actual spending, may have adverse effects for certain sectors, schemes/programmes and target population groups, particularly disadvantaged groups. The metric here shows an illustration of budget credibility across States. In 2020-21, for most States, actual spending (A) was lower than Budget Estimates (BE). The gap between A and BE ranges from -1% to -26.2%.

Hover over the State, or tap on it, to see value of the indicator