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States' combined fiscal deficit rose to 3% in 2024-25: RBI report
Financial Express Mumbai
|January 24, 2026
STATES' CONSOLIDATED GROSS fiscal deficit rose to 3.3% of gross domestic product (GDP) in 2024-25, after staying below 3% for the previous three years, according to a Reserve Bank of India's (RBI) annual report on state finances released on Friday.
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According to the RBI analysis, the increase in the states' combined fiscal deficit is largely attributed to 50-year interest-free loans extended by the Central government under the Special Assistance to States for Capital Investment scheme. These loans are provided in addition to the standard net borrowing limits for states. For 2025-26, states have budgeted
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