<h1>State finances strained by welfare guarantees and GST shortfall; measures to raise tax revenue and trim spending.</h1> Five welfare guarantees and GST rate rationalisation have increased committed revenue expenditure and reduced revenue receipts, widening the revenue deficit. The government plans to mobilise own-tax revenues and undertake expenditure rationalisation to protect priority allocations and narrow the deficit. Mid-year figures show 7.7% revenue collection growth, 32.3% rise in capital spending, first-half expenditure at 36.4% of budget estimates, and a projected fiscal deficit of 2.95% of GSDP.