Even though there was a moderate impact on States’ own tax revenue and tax devolution from the Centre (as ratio to GSDP) due to overall macroeconomic slowdown observed in the Indian economy in 2009–10, revenue expenditure increased due to higher administrative expenditures arising out of revised pay structure.
However, capital outlays also increased with a greater focus on transport, water supply and sanitation, irrigation and flood control, education, sports, art and culture. The fiscal consolidation process, however,  BIS central bankers’ speeches  3  was resumed by NES in their 2010–11 budgets.