Relative tax performances: analysis for selected states in India
- 2001
- p.3869-871
- 6 Oct
In a federal form of government structure like that of India, the state-level governments receive supplementary budgetary resources from the central government as support for the former's public expenditure activities. The devolution of funds from the centre to the states takes the form of share of the revenue raised by central taxes and grants-in-aid. An individual state's tax revenue collection, relative to its taxable capacity, is a major determinant of the amount of funds to be allocated for the state. This paper examines the relative tax performances of some selected states based on annual data on state tax revenue for the period 1986-87 to 1996-97 using the technidque of Quantile Regression. - Reproduced