By Uttar Pradesh. Conversely

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AgenciesUP revenue surplus

In a first-of-its-kind decadal study on state finances, the Comptroller and Auditor General (CAG) has found 16 states in India recorded a revenue surplus in the fiscal year 2023. Leading the list is Uttar Pradesh with a surplus of Rs 37,000 crore, followed by Madhya Pradesh, another state once considered economically weak, a TOI report stated.Top revenue surplus statesAfter Uttar Pradesh, the states with the highest revenue surplus include Gujarat (Rs 19,865 crore), Odisha (Rs 19,456 crore), Jharkhand (Rs 13,564 crore), Karnataka (Rs 13,496 crore), Chhattisgarh (Rs 8,592 crore), Telangana (Rs 5,944 crore), Uttarakhand (Rs 5,310 crore), Madhya Pradesh (Rs 4,091 crore) and Goa (Rs 2,399 crore). The northeastern states of Arunachal Pradesh, Manipur, Mizoram, Nagaland, Tripura, and Sikkim also feature among surplus states. Of the 16 states with a revenue surplus, at least 10 are led by the BJP.States in revenue deficitThe report, released by CAG Sanjay Murthy on Friday, noted that 12 states faced a revenue deficit in 2022-23. These include Andhra Pradesh (-Rs 43,488 crore), Tamil Nadu (-Rs 36,215 crore), Rajasthan (-Rs 31,491 crore), West Bengal (-Rs 27,295 crore), Punjab (-Rs 26,045 crore), Haryana (-Rs 17,212 crore), Assam (-Rs 12,072 crore), Bihar (-Rs 11,288 crore), Himachal Pradesh (-Rs 6,336 crore), Kerala (-Rs 9,226 crore), Maharashtra (-Rs 1,936 crore), and Meghalaya (-Rs 44 crore).West Bengal, Kerala, Himachal Pradesh, and Punjab have increasingly relied on Revenue Deficit Grants from the Centre. CAG noted, “West Bengal received the largest share of 16% grants in FY 2023 to bridge the gap between its revenue receipts and expenditure, followed by Kerala 15%, Andhra Pradesh 12%, Himachal Pradesh 11%, and Punjab 10%.”States boosting own revenue sourcesSome states have strengthened their own tax and non-tax revenue sources. Haryana leads with over 80% of its revenue coming from state sources, followed by Telangana (79%), Maharashtra (73%), Gujarat (72%), Karnataka (69%), Tamil Nadu (69%), and Goa (68%).Live Events“In 2022-23, six states: Haryana, Maharashtra, Telangana, Karnataka, Gujarat and TN had States’ Own Tax Revenue (SOTR) of more than 60% of their total revenue receipts. Arunachal, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim & Tripura had SOTR of less than 20%,” CAG observed.The share of Union taxes and grants-in-aid, including finance commission grants, accounted for 27% and about 17% of states’ total revenue receipts. States received a total of Rs 1,72,849 crore as finance commission grants, including Rs 86,201 crore in Revenue Deficit Grants.Composition of own revenue sourcesThe own revenue receipts of Karnataka, Tamil Nadu, Goa, and Kerala range between 60%-70%, while Andhra Pradesh, Rajasthan, Punjab, and Chhattisgarh fall between 50%-60%. For Jharkhand, Madhya Pradesh, Uttar Pradesh, West Bengal, and Uttarakhand, the range is 40%-50%. CAG said, “The share of states’ own tax and non-tax revenue in revenue receipts of all eight northeastern states, and Bihar and Himachal Pradesh were below 40%.”Among states’ own revenue streams, a major portion comes from the State Goods and Services Tax (SGST), value-added tax (VAT), and excise duties on alcohol, petroleum products, and electricity outside the GST framework.Add as a Reliable and Trusted News Source Add Now!
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