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Changing Tax Capacity and Tax Effort of Indian States in the Era of High Economic Growth, 2001-2014

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  • Sacchidananda Mukherjee

Abstract

Growing demand for public expenditures, limitations in expanding fiscal space and limited scope to deviate from common harmonized tax system under the proposed Goods and Services Tax (GST) regime may induce the states to look for opportunities to expand revenue mobilization through alternative channels (e.g. nontax revenue mobilization). An assessment of the existing tax efficiency (or tax effort) and strengthening tax administration could be one of such alternatives available for states to pursue. Tax administration is as important as tax base to augment revenues of a state.

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  • Sacchidananda Mukherjee, 2017. "Changing Tax Capacity and Tax Effort of Indian States in the Era of High Economic Growth, 2001-2014," Working Papers id:11770, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:11770
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    Cited by:

    1. Avipsa Mohanty & Dinabandhu Sethi & Asit Ranjan Mohanty, 2022. "Does petroleum tax revenue drive sales tax effort of Indian states? A stochastic frontier approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1257-1268, January.
    2. Sushama Murty, 2019. "Some results from the theory of optimal taxation and their relevance for increasing the progressiveness of Indian tax structure," Indian Economic Review, Springer, vol. 54(1), pages 19-50, June.
    3. Sacchidananda Mukherjee & Debashis Chakraborty, 2017. "Can Economic Development Influence General Election Outcomes? Evidence from Consumption Expenditure Trends of Indian States," Journal of Development Policy and Practice, , vol. 2(2), pages 131-150, July.
    4. Tandon, Suranjali & Rao, R. Kavita, 2017. "Trade Misinvoicing: What can we Measure?," Working Papers 17/200, National Institute of Public Finance and Policy.

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    More about this item

    Keywords

    Tax capacity; Tax efficiency; Value Added Tax (VAT); Stochastic Frontier Approach; Panel Data Analysis; States of India; Demand; Public; Expenditure; Population; Urbanization; Mobilization; Deficits; Infrastructure; Investment.;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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