The Centre’s share in States’ revenue has surged in the last decade
1 day, 8 hours ago

The Centre’s share in States’ revenue has surged in the last decade

The Hindu  

Over the last decade, States have been relying more and more on transfers and grants from the Centre. Chart 1 shows the share of States’ own tax revenue, non-tax revenue, and Central transfers in their total revenue. Click to remove AMP mode Moreover, the share of non-tax revenue in States’ total revenue is likely to go below the 24% mark in FY25 for the first time in the past 25 years. Non-tax revenue of States includes grants from the Centre, earnings from social, fiscal, economic, and general services rendered by the States, interest receipts, and dividends/profits from State public sector enterprises. It depicts the share of grants from the Centre, earnings from services, interest receipts, and dividends/profits from State public sector enterprises in the States’ non-tax revenue.

States State Share Central Centre Tax Revenue Total Chart Mark First Half Decade Bhadra Sgst Own Tax Revenue Interest Receipts  nontax  decade  share  centres  total  mark  states  tax  revenue  state  surged  centre

History of this topic

Is the Centre being iniquitous in State transfers?
5 months, 1 week ago

Is the Centre being iniquitous in State transfers?

The Hindu  

Following the Union Budget, Opposition Chief Ministers have boycotted and walked out of the NITI Aayog meeting chaired by the Prime Minister alleging that the Centre is discriminating against non-NDA States. R. Ramakumar: There are different types of transfers from the Centre to States: devolution of taxes, loans, finance commission grants and, non-finance commission grants, which are essentially discretionary grants. …

State-level rumbles in the Indian federation: Can the 16th FC help?
10 months, 2 weeks ago

State-level rumbles in the Indian federation: Can the 16th FC help?

Live Mint  

These are tumultuous times, with the resurgence of farmer unrest. It is better to adjust the target in that manner, so that the reported gross tax revenue can be directly used thereafter to compare the percentage states actually got with the adjusted target. In FY23, states received in aggregate ₹9.5 trillion as their tax share, which was 31.1% of the …

Are States getting funds they are entitled from the Centre?
10 months, 2 weeks ago

Are States getting funds they are entitled from the Centre?

The Hindu  

The recent agitations by the governments of Kerala and Karnataka, and the support extended by several State governments, have highlighted many disquieting issues in the practice of fiscal federalism in India. The shrinking divisible pool The net divisible pool, or net proceeds, is that part of the gross tax revenue from which a share would have to be vertically devolved …

Data | How States’ share in Centre’s taxes declined due to cesses, explained in 5 charts
2 years, 4 months ago

Data | How States’ share in Centre’s taxes declined due to cesses, explained in 5 charts

The Hindu  

Nearly two weeks ago, Chief Ministers expressed their concern about dwindling State revenues in a NITI Aayog meeting chaired by the Prime Minister. According to the 15th Finance Commission’s report, in FY19, the Union government raised 62.7% of the total resources raised by the Union government and States, while States had borne 62.4% of the aggregate expenditure. Chart 1 shows …

Why states are demanding more from the 15th Finance Commission
5 years, 5 months ago

Why states are demanding more from the 15th Finance Commission

Live Mint  

Five years ago, when the 14th finance commission recommended an increase in devolution of funds to state governments and a hike in the share of untied funds they received, it was heralded as a new era for fiscal federalism in the country, and one that would significantly empower state governments at a time when they were facing rising developmental demands. …

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