New Delhi, June 11 -- Strong economic growth is helping prevent the finances of Indian states from deteriorating despite persistent fiscal deficits and rising debt levels, according to a report by S&P Global Ratings.

In a report titled "Indian States: Strong Growth Softens The Blow Of Fiscal Imbalances", the global ratings agency said Indian states continue to face significant spending pressures and revenue-expenditure mismatches, but robust economic expansion is supporting revenue growth and keeping credit risks manageable.

"These spending requirements will continue to weigh on the weak budgetary settings of states. That said, we expect credit risks to be manageable, on the back of robust economic expansion which in turn sustains fisca...