With respect to the performance of the Indian states, ratings agency ICRA have surmised that their fiscal outcomes are likely to vary considerably this year depending on the impact of COVID-19 infections, restrictions and vaccinations on the local economy.
ICRA added that state governments had projected some "welcome fiscal consolidation" for the current 2021/22 budgets after the pandemic-induced disruption of 2020/21.
"However, most of these budgets were published before the second surge in COVID-19 infections, which has reignited uncertainty regarding the growth and fiscal outlook," the agency said.
Most Indian states have imposed restrictions although there has been no national lockdown imposed as in 2020.
All eyes and ears will now be glued to the post GST council meeting declarations by finance minister Nirmala Sitharaman.