Most states are on reform path but they need to consolidate their fiscal position and generate more non-tax revenues, says a report. According to the State Finances Handbook 2015 released by Brickwork Ratings, most states are undertaking reforms, specially in areas like power, urban development, taxation as well as governance.
“A major challenge for the State Governments would be to make credible progress towards fiscal consolidation amidst macroeconomic turmoil,” said the Handbook.
“States need to explore sources to boost non-tax revenues and review their policies towards user charges,” it said. States that reform power sector, improve health and education, become investor friendly and reduce corruption will do well in the coming years, the study pointed out.