States' tax revenues lower than two years ago as demand for spending rises

An analysis of 17 states shows that while states' revenue spending in April-June 2021 was 14% higher than the same period in 2019, own revenues were 8% lower

The April-June quarter (Q1) of 2021-22 was a period of contradictions. It was when India faced the deadliest coronavirus surge since the pandemic began, but it is also when Indian companies made record profits.

What's more, the Government of India also earned record revenue. But a Business Standard analysis of 17 states shows that the same is not true for state governments. In fact, their tax revenues are lower than those earned two years ago.

The 17 states earned Rs 3.11 trillion in Q1FY22, nearly twice the amount in the same period previous year, or the pandemic year 2020-21. But