Viksit Bharat Goal Needs Stronger State Finances: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman underscores that India’s aspirational states are facing deep structural fiscal challenges, including rising committed expenditure, weak own-source revenues, and high debt servicing burdens. She stresses that simply increasing central transfers is not a sustainable solution, and calls for structural correction through stronger revenue mobilisation, improved property tax collection, rational user charges, and disciplined expenditure management. Linking these reforms to the broader vision of Viksit Bharat, she highlights that fiscally strong states are essential for co-investment in infrastructure, resilience during shocks, and balanced national growth. She also points to India’s broader macroeconomic transformation, noting improvements in fiscal deficit management, tax reforms, and institutional strengthening that have helped the economy move from fragility to one of the fastest-growing major economies globally.