States’ expenditure on salaries, pensions, and interest payments has surged nearly 2.5 times over the past decade, highlighting the rising share of committed spending in state budgets, according to the latest report by the Comptroller and Auditor General of India (CAG).The report, State Finances 2022-23, shows that combined committed expenditure across 28 states rose to Rs 15,63,649 crore in FY 2022-23 from Rs 6,26,849 crore in FY 2013-14, PTI reported. Salaries remained the largest component, followed by pensionary obligations and interest payments on public debt, with nine states reporting interest payments exceeding pensions, indicating higher debt servicing requirements.Revenue expenditure constituted 84.73 per cent of total state spending in FY 2022-23, or 13.85 per cent of combined GSDP, underscoring the limited fiscal space for discretionary outlays. Subsidy payments increased over threefold from Rs 96,479 crore in FY 2013-14 to Rs 3,09,625 crore in FY 2022-23, while grants-in-aid stood at Rs 11,26,486 crore, together making up more than 83 per cent of total revenue expenditure.“Over the period 2013-14 to 2022-23, revenue expenditure increased by 2.66 times, committed expenditure by 2.49 times, and subsidies by 3.21 times,” the CAG report noted.The report also reviewed fiscal targets set by states. Seventeen states aimed for revenue surplus, six targeted zero revenue deficit, and five planned for revenue deficits in 2022-23. Of those targeting surplus, five states—Assam, Bihar, Himachal Pradesh, Meghalaya, and Rajasthan—ended up in deficit, while 12 achieved their surplus goals. Among states targeting deficits, Karnataka reported a surplus, Maharashtra stayed within its target, and three states exceeded their deficit limits.Finance Commission revenue deficit grants were extended to nine states—Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Meghalaya, Punjab, Rajasthan, Tamil Nadu, and West Bengal—highlighting the ongoing support for states struggling to meet fiscal targets.The CAG report underscores the growing pressure on state budgets from committed expenditures and the urgent need for fiscal prudence, particularly in the context of rising debt servicing and subsidy obligations.

New Delhi: The sales of entry-level cars are expected to record a robust double-digit growth year-on-year in the forthcoming festive season due to the GST rate cut that kicks in from Monday, according to a report by HSBC Research. “The passenger vehicle segment is now expected to grow by double digits (YoY) during the upcoming festive season compared to single digits before the GST cut announcement,” the report states.

The report is based on an interaction with more than 10 dealers across geographies in India and calls to a larger dealer. It points out that the market leader, Maruti Suzuki, has announced its new price list after the announcement of the GST cut. Consequently, enquiries have increased significantly, both online and walk-in, across segments by 15-20 per cent, and more for entry-level cars (K10, Celerio, S-presso and Wagon R) in Tier-1 cities.

The share of first-time buyers increased by 5-7 per cent in total bookings so far. The premium hatchback segment (Swift, Baleno, etc.) is also seeing a decent uptick, the report further states.

Maruti Suzuki has announced steep price cuts to the tune of 11-21 per cent on its entry-level portfolio, 9-11 per cent on premium hatchbacks and up to 8 per cent on Brezza (Exhibit 1), which is more than the GST cut of 3.5-8 per cent on these models. This should support a revival of the entry-level segment and keep Brezza competitive as well. Brezza’s cost differential with competing models such as Nexon, Venue, Sonet and 3XO had increased by 5-6 per cent following the GST cut, and now this should normalise post price cut, the report states.

WagonR continues to lead in the entry-level cars segment, though the yellow board (cabs) percentage has increased over time. WagonR is strong among personal-use vehicle customers in Tier 2 cities. Interestingly, it had started sliding in Tier 1 cities last year, but an increase in enquiries and bookings post GST cut announcement suggests a trend reversal towards growth now, the report points out.

The new Maruti SUV ‘Victoris’ is getting a good response from customers. However, there might be some cannibalisation of Grand Vitara (GV) as pricing is similar. We expect it to add 5,000-6,000 units per month net of cannibalisation. The Victoris also introduces an entry-level hybrid priced at INR 1.64m to the Maruti stable, which is available only in Toyota HyRyder and not in Grand Vitara, the report further states.

It also observes that the entry-level two-wheeler segment is seeing a healthy uptick from the rural market with a double-digit increase in enquiries. Credit-based approvals have also increased over the past 1-2 months, which is positive for overall two-wheeler retail sales.

Mumbai: The combined market valuation of seven of the country’s 10 most valued companies climbed by Rs 1,18,328.29 crore last week, with State Bank of India and Bharti Airtel emerging as the biggest gainers in an upbeat equity market.

During the week, the BSE benchmark index surged 721.53 points, or 0.88 per cent — reflecting strong investor sentiment. Among the gainers, the market value of State Bank of India jumped by Rs 35,953.25 crore to reach Rs 7,95,910 crore, while Bharti Airtel’s valuation rose by Rs 33,214.77 crore, taking it to Rs 11,18,952.64 crore.

Tata Consultancy Services (TCS) added Rs 12,952.75 crore, pushing its market capitalisation to Rs 11,46,879.47 crore. Life Insurance Corporation of India (LIC) also advanced Rs 12,460.25 crore to Rs 5,65,612.92 crore, while Infosys climbed Rs 6,127.73 crore to Rs 6,39,901.03 crore.

HDFC Bank recorded a marginal rise of Rs 230.31 crore, with its valuation standing at Rs 14,84,816.26 crore. On the losing side, ICICI Bank’s market value declined by Rs 10,707.87 crore to Rs 10,01,654.46 crore. Bajaj Finance lost Rs 6,346.93 crore, slipping to Rs 6,17,892.72 crore and Hindustan Unilever shed Rs 5,039.87 crore to Rs 6,01,225.16 crore.

At the end of the week, HDFC Bank remained among the most valued company, followed by TCS, Bharti Airtel, ICICI Bank, State Bank of India, Infosys, Bajaj Finance, Hindustan Unilever and LIC.

Meanwhile, in the previous week ended September 7, the combined market valuation of seven top firms had risen by Rs 1,06,250.95 crore, with Bajaj Finance emerging as the biggest gainer as the BSE benchmark jumped 901.11 points, or 1.12 per cent.

In the previous week, Bajaj Finance’s market value jumped by Rs 40,788.38 crore to reach Rs 6.24 lakh crore. Infosys added Rs 33,736.83 crore, taking its valuation to Rs 6.33 lakh crore.