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Do political determinants affect revenue collection? Evidence from the Indian states

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  • Bharatee Dash
  • Angara Raja

Abstract

In a recent study, Dash and Raja ( 2013 ) have shown that the size and composition of public expenditure of Indian states are systematically linked with political determinants such as the extent of government fragmentation, strength of opposition, electoral years, and ideology. This study extends the questions to whether there are similar links to revenue collections by the governments that rule the different states in India. Using the same time period of the previous study, four revenue measures related to tax collection and internal debt are considered and four different sets of hypotheses are developed by linking the political determinants with each of the revenue measures. The overall findings of the study suggest that the government-specific political determinants are significant and robust determinants of revenue collections of the Indian states. Copyright Springer-Verlag Berlin Heidelberg 2014

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  • Bharatee Dash & Angara Raja, 2014. "Do political determinants affect revenue collection? Evidence from the Indian states," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(3), pages 253-278, September.
    • Handle: RePEc:spr:inrvec:v:61:y:2014:i:3:p:253-278
    DOI: 10.1007/s12232-014-0210-z
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    More about this item

    Keywords

    Political determinants; Revenue collection; Political parties; Interest groups; Indian states; H0; H1; H2;
    All these keywords.

    JEL classification:

    • H0 - Public Economics - - General
    • H1 - Public Economics - - Structure and Scope of Government
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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