Synopsis The fiancés of State Governments in India are not in good shape. There are structure weaknesses in State Finances. The State Governments in India relising fiscal stress have initiated fiscal reforms during nineties in the field of taxation, public undertakings, public debt and public expenditure. An attempt has been made in this study to examine the recent trends in the finances of State Governments in India. It describes the resource mobilization effort of State Governments in India. It describes the resources mobilization effort of State Governments individually and in aggregate. It makes an attempt to examine the causes of fiscal stress of Stress of State Governments in India and Suggest measures to reduce mounting revenue and fiscal deficit of State Governments. Inter-State comparisons have been made in this study in order to examine the problems being faced by States in the sphere of fiancés and the recent measures that have been initiated by States for correction of Fiscal imbalances. Besides, an attempt has been made to analyse the mismatches between revenue, receipts and revenue expenditure and also analysis in detail the debt burden of the state and its composition. Besides, inter-state debt levels have been studied for benchmarking the best practices of States so that other States including Rajasthan can adopt them in totality or in a modified way depending upon the suitability of the scheme for debt sustainability point of view. It also examines reforms undertaken by States in sate enterprises, debt-swap scheme, fiscal responsibility legislation of States and the likely impact of States and the likely impact of the recommendations of the Twelfth Finance Commission on the Finances of State Commission on the Finances of State Government in India. The book is useful for students, researchers, public-economists, policy makers and for those interested in knowing the financial health of state Governments in India.