Post polls, four states, one economic challenge
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📌 Summary:
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Four states (Assam, Tamil Nadu, Kerala, West Bengal) held elections recently; editorial analyses their economic performance post-polls
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Assam recorded highest CAGR of 11.4% in GSDP, TN 10.3%, Kerala 8.6%, WB 9.1% — all below India's 12.3% national average
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States are increasing expenditure faster than revenues, leading to widening fiscal deficits
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Per capita GDP growth is slower than overall GDP growth — meaning benefits are not reaching the population proportionally
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Unemployment is rising in all four states, with youth unemployment being particularly acute
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Capital expenditure has declined as share of total expenditure, with revenue spending (salaries, subsidies) crowding out productive investment
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States face twin challenge: managing populist election promises (free electricity, cash transfers) while maintaining fiscal discipline
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The editorial argues states must improve own tax revenues, cut unproductive subsidies, and increase capex to sustain long-term growth
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