Grant-in-aid, tax devolution from Centre to States will moderate at 4.5% from 15.3% last fiscal: NSE

State finances are projected to tighten in FY25 due to a 6.3 per cent decline in central grants. States dependent on these grants, especially in eastern and northeastern regions, will be significantly affected. Devolution growth will also slow, making it harder for states to balance budgets and fund key projects.
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