Revenue growth of states in FY26 expected to be lower than that of FY25: Report

A recent ICICI Bank report forecasts slower revenue growth for Indian states in FY26 compared to FY25, primarily due to weaker non-tax revenue growth and reduced central government transfers. While states' own tax revenue is expected to remain steady, the overall slowdown may impact their fiscal positions. Total receipts are projected to grow by 12% YoY in FY26.