BS analysis: States' own tax revenues show slight increase in tax buoyancy

The own tax revenues of states have risen only marginally from 7% of GSDP in 2011-12 to 7.1% in 2018-19

Over the past few weeks, several state governments have presented their Budgets for 2018-19. A Business Standard analysis of 10 state Budgets throws up some salient points. 

First, at the aggregate level, states’ own tax revenues - as a percentage of gross state domestic product (GSDP) - have barely registered a rise over the seven-year period from 2011-12 to 2018-19, indicating a marginal increase in tax buoyancy. A similar trend is observed in states’ non-tax revenues as well.

Second, these states have seen a sharp rise in their share in central taxes as well as grants from the Centre as