States' revenue growth to accelerate 9-11% as GST collections surge 16% in first five months

Revenue growth for 18 major Indian states is projected to accelerate to 9–11% in fiscal 2027, with combined revenues surpassing ₹44 lakh crore, according to Crisil Ratings. The financial expansion is driven primarily by a 12–13% anticipated rise in GST collections, supported by robust consumption and import gains.

Central tax devolution to states is expected to increase by 11–12%, further strengthening state finances. Stable growth in liquor, petroleum, and stamp duty taxes will provide additional support to state balance sheets across the period.