India's 2024-25 union expenditure rose 4.8%, RECO dropped to 4.2, central finances improved, but state budgets worsened.

• Union revenue expenditure declined as % of GDP, capital outlay remained stable, and interest payments slowed.
• Central GFD/RD improved via non-tax revenue, disinvestment; capital outlay grew 20.9%.
• State finances deteriorated despite central gains, with revenue cuts and higher capital spending.