Larger states to get more money thanks to buoyant tax mop-ups and Central transfers: Report

By: Admin
July 04, 2024
Categories: GST Recent News
4 Min Read

Buoyant tax collections, particularly from GST and Central transfers, are expected to help larger states increase their revenue by 8-10 percent this fiscal year, according to a report.

The report projects that the top 18 states, which account for over 90 percent of the gross state domestic product, will see revenue grow at a steady pace of 8-10 percent to Rs 38 trillion this fiscal year. Last year, the growth rate was 7.5 percent, according to Crisil Ratings.

Higher growth will be primarily supported by healthy GST collections and devolution from the Centre, which together comprise 50 percent of the aggregate state revenue.

Revenue from tax on liquor sales, which makes up 10 percent of total revenue, is expected to remain stable. Sales tax collection from petroleum products, accounting for 7-8 percent of revenue, and grants recommended by the 15th Finance Commission, making up 10-11 percent, are expected to see modest mid-single-digit growth, according to the report.

Buoyant tax collections, particularly from GST and Central transfers, are expected to help larger states increase their revenue by 8-10 percent this fiscal year, according to a report.

The report projects that the top 18 states, which account for over 90 percent of the gross state domestic product, will see revenue grow at a steady pace of 8-10 percent to Rs 38 trillion this fiscal year. Last year, the growth rate was 7.5 percent, according to Crisil Ratings.

Higher growth will be primarily supported by healthy GST collections and devolution from the Centre, which together comprise 50 percent of the aggregate state revenue.

Revenue from tax on liquor sales, which makes up 10 percent of total revenue, is expected to remain stable. Sales tax collection from petroleum products, accounting for 7-8 percent of revenue, and grants recommended by the 15th Finance Commission, making up 10-11 percent, are expected to see modest mid-single-digit growth, according to the report.

Source from: https://www.newindianexpress.com/business/2024/Jul/03/larger-states-to-get-more-money-thanks-to-buoyant-tax-mop-ups-and-central-transfers-report

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