The covid pandemic in 2020 and the ensuing nation-wide lockdown to contain its spread adversely impacted the finances of both the Union and the State governments. While there was a need to increase expenditures to support lives and livelihood, revenues fell due to interruption in economic activities in the country. To mitigate the impact of the pandemic on the economy both the Union and State governments undertook several measures. The fiscal year 2021-22 saw the outbreak of the second wave of the pandemic which further accentuated the fiscal stress. However, its impact was less severe as compared to that during the first wave due to less stringent and localized restrictions imposed by state governments. The year 2021 also saw start of the vaccination process in the country and that gained pace during the second half of the year. In the light of the above developments, the Chief Minister's Rajasthan Economic Transformation Advisory Council (CMRETAC) felt the need to re-consider the fiscal management of Rajasthan and assigned this task to the National Institute of Public Finance and Policy with the following Terms of Reference (ToR): A. Analyse fiscal management of the state to address structural issues which are under the control of the state government B. Analyse fiscal management of the Union to assess the impact on state?s revenue in the foreseeable future C. Analyse the impact of the first and second wave of Covid-19 on the Union and the State to help the state introduce necessary revenue and expenditure side measures to manageably absorb the impact of Covid-19 induced economic shock D. Analyse the prospective economic impact of the potential third wave and suggest ways to help state economically prepare for any such eventuality In light of the above, specifically suggest practical and forward looking strategies on the following: � Ways to increase Tax and Non-Tax Revenue (Increase collections and decrease deficits) � Reduction of Contingent Liabilities (Avoid off-budget borrowings) � Ways to improve Quality of Expenditure for greater economic resilience (Improve adequacy, efficiency and effectiveness of expenditure) E. While analysing the above, also identify structural reasons for mismatch in Finance Commission?s assessment and state?s own assessment on revenue and expenditure F. Spell out policy and practice recommendations in the context of the above