The financial performance of State Public Sector Enterprises (SPSEs) underscores the urgent need for comprehensive reforms at the State level, aligned with the Union government’s New Public Sector Enterprise (PSE) Policy, the 16th Finance Commission said in its report. As per the latest available data, nearly 50% per cent of SPSEs—541 out of 1,107 enterprises for which profit and loss data are available—are either loss-making or earning zero net profit. This reflects the fragile financial health of SPSEs and their growing burden on State finances.