In GST era , state govts control only 35% of their revenue: Report

With the implementation of GST, the autonomy of states is expected to reduce an additional 17% of the revenues

It was known that goods and services tax (GST) would curb a state’s autonomy since decisions are taken collectively in the new regime, but a new study has quantified the surrender of sovereignty in terms of taxes.

A report by Delhi-based non-profit, PRS Legislative Research, shows that states now have control over only 35 per cent of their revenues in 2018-19.

This is so because transfers from the Centre are estimated to make up 48 per cent of states’ revenues in the year. 

With the implementation of GST, the autonomy of states is expected to reduce an additional 17 per cent of the