IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Efficiency In Tax System: A Study Of Tax Responsiveness In North- Eastern States

Listed author(s):
  • Dr. B.Mishra

    (North-Eastern Hill University)

  • Dr. Purusottam Nayak

    (North-Eastern Hill University)

Demand for increased public expenditure due to enhanced political consciousness and implementation of investment programmes through mechanism(s) infected with diseconomies are the two important forces among several others to put increased pressure on the fiscal resources available within a state. Short-term measures undertaken by a Sate viz., dependence on federal transfers and resorting to overdraft evidently has their respective detrimental implications on fiscal health of the state. The remedial approach pervasively suggested by the contemporary fiscal strategists to tackle the ever-increasing fiscal gap moves towards attaining an appropriate degree of financial self reliance. Thus, the obvious solution of fiscal restructuring dwells on an in-depth understanding of the fiscal system of a state particularly on a temporal analysis of the indicators that throw light on the performance of a tax system in respect of two objectives: (i) siphoning off into the state exchequer the collection of revenue without endangering the incentive for private savings and investment and (ii) helping to release resources for private investment by reducing private consumption. While the indicators like the compound growth rate and marginal tax rates do not take in to account the taxable capacity, the tax ratio and the tax efforts measures generally fail to indicate the responsiveness of the tax structure to changes in state’s income over time. Thus the temporal analysis of tax responsiveness in terms of Elasticity and Buoyancy becomes imperative to have an evaluative insight into the effectiveness of a state’s tax system. The present study is an attempt in this regard by taking the States of North Eastern Region for the period 1963-64 to 2000-01. The study reveals that most of the States in the region have failed miserably in mobilizing resources to meet ever increasing public expenditures and thereby are suffering from dependency syndromes.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by EconWPA in its series Public Economics with number 0509011.

in new window

Length: 22 pages
Date of creation: 29 Sep 2005
Handle: RePEc:wpa:wuwppe:0509011
Note: Type of Document - doc; pages: 22
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwppe:0509011. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.