 The difference in recovery rates is striking for non-merit social services, being 18.14% for the centre and 3.97% for the States.It is only marginally different for non-merit economic services (11.65% for Centre and 12.87% for States) where, in fact, States do better.The total non-merit subsidies for the year 1994-95 amounted to 10.71% of GDP at market prices, resulting in a combined fiscal deficit of 7.3% for the Centre, States and Union Territories.