It is noteworthy that for all the States together, the revenue deficit relative to the GDP is estimated to decline to 0.4 per cent in the current year from one per cent in the previous year and 2.7 per cent in 1990-2000.
The corresponding picture for the Gross Fiscal Deficit relative to the GDP is 3.1 per cent compared to 3.7 per cent in the previous year and 4.7 per cent in 1990-2000. However, the issues of power subsidies and ensuring quality in the delivery of services, especially with regards to education and health, do need to be addressed.