A Statistical Analysis of Gross State Domestic Product and Fiscal Indicators (2018–19 To 2024–25)

Economic growth and sound fiscal management are essential for the sustainable development of any country. In India, State Governments play a crucial role in promoting economic development through public expenditure, infrastructure investment, and social welfare programmes. Fiscal indicators such as Gross Fiscal Deficit, Revenue Deficit, Interest Payments, Capital Expenditure, and Social Sector Expenditure significantly influence the economic performance of States and Union Territories. This study examines the fiscal and economic performance of 31 Indian States and Union Territories during the period 2018–19 to 2024–25 using official government data. The study employs descriptive statistics, Pearson correlation analysis, multiple linear regression, K-Means clustering, Principal Component Analysis (PCA), and trend analysis to investigate the relationship between fiscal indicators and GSDP, classify States based on fiscal characteristics, identify the major dimensions of fiscal performance, rank States according to a composite index, and analyse trends over time. The findings of this study provide valuable insights into the fiscal structure of Indian States and contribute to a better understanding of the relationship between government expenditure and economic development.