Sources of revenue of state government in india
Answers
Revenue from state sales and gross receipts taxes—including both general sales taxes and selective taxes on products such as alcohol, cigarettes, and motor fuels—was $441 billion in 2016, or 23 percent of state general revenue. Individual income taxes provided $344 billion (18 percent of state general revenue) and corporate income taxes accounted for $46 billion (2 percent of state general revenue). Revenue from all other taxes (including license fees, estate taxes, and severance taxes) was $92 billion—5 percent of state general revenue. Charges and fees—notably tuition paid to state universities, payments to public hospitals, and tolls on highways or bridges—and other miscellaneous revenue provided $349 billion, or 18 percent of state general revenue in 2016.
General revenue does not include revenue collected by states from “business-like” enterprises, such as state-run liquor stores, utilities, and pension funds.
CHANGING SOURCES
Since 1977, the share of state general revenue from intergovernmental transfers, as well as charges and user fees, has increased, while the share from taxes has declined (figure 2). Revenue from charges and user fees increased significantly from 11 percent in 1977 to 18 percent in 2002, as states sought to broaden their revenue bases, including large increases in public university tuition. Charges as a percentage of revenue has been fairly flat since 2002, however.
Over roughly the same period, the share of state general revenue from taxes declined from 60 percent to 50 percent. Revenue from taxes as a percentage of state general revenue has also been roughly flat since 2002. Among specific taxes, the portion from individual income taxes rose slightly from 1977 to 2016, but the share from sales and corporate taxes declined.