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Policy & Sector Studies

GST Compensation and State Fiscal Space: A Working Assessment

· Independent working assessment

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Abstract

A policy paper on post-compensation GST architecture and state borrowing headroom.

States face a tighter fiscal constraint after GST compensation ended. We outline options for revenue-neutral rate reform and borrowing flexibility.

Methodology

Descriptive fiscal analysis of state budgets.

Conclusion

A predictable GST rate structure would reduce uncertainty more than ad-hoc cesses.

GST fiscal federalism states

How to cite

Rohan Mehta (2026). GST Compensation and State Fiscal Space: A Working Assessment. IndianEconomy.com. https://indianeconomy.com/research/gst-compensation-state-fiscal-space

Author profile: Rohan Mehta