State Revenue Deficit May Exceed Projections in FY26

Imagine the government of many states made a budget.

The states think they will have a specific amount of money, but it is possible the states might end up with less money than expected.

A group called ICRA looked at this and said the states might not make as much money as they thought.

This is because the money coming in isn't growing as fast.

This could be because of problems in the economy or other things.

The states plan to spend more money than last year on things like building roads.

Overall, this means the states might have to borrow more money.