New Delhi: The economic survey has warned there was a need to cut fiscal deficit to bring down liabilities that have mounted to Rs 7,91,400 crore, or 28.7 per cent of GDP, by 2003-04.

The economic pointed to the total liabilities of states that surged by nearly 400 per cent in last decade to Rs 7,91,400 crore in 2003-04 from Rs 1,60,077 crore in 1993-94.

The states' liabilities surged by almost 15 per cent in the last fiscal from Rs 6,88,421 crore in 2002-03, it said.

As a percentage of GDP, the liabilities started rising from 17.8 per cent in 1996-97 to 28.7 per cent last fiscal.

Even though several initiatives have been undertaken by centre in the 10 th Plan period (2002-07), it said, "Few states have put in place fiscal responsibility legislations to strengthen the institutional backing for fiscal reforms