The Economic Survey 2024-25 was tabled in the Parliament today (January 31, 2025) after President Droupadi Murmu’s address commencing the Budget Session. The report showed an increase in Gross Tax Revenue( GTR ) of union and Own Tax Revenue ( OTR ) of the states at a comparable pace during this period.
The overall tax revenue position of the state governments appears better as of November, because of increased tax devolution by the union. Among the state-specific taxes, stamps and registration, sales tax, state excise duties, and other taxes and duties registered positive growth, whereas land revenue declined for states as a collective.
As per the report, for 15 states, OTR accounted for more than half of their total tax receipts (Chart I.39), the highest being Telangana at 88 per cent, followed by Karnataka and Haryana at 86 per cent each. Further, states with a higher ratio of own revenue receipts (ORR) to total revenue receipts also tended to have relatively lower ratios of revenue deficit to total revenue receipts
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And for 23 States , GST was the main source of revenue amongst ORR with the greatest reliance thereon by Manipur and Nagaland at 78 per cent and 72 per cent, respectively (Chart I.41). States garnering the highest shares in respective ORRs w.r.t. stamps & registration, sales tax and state excise duties were Maharashtra, Tamil Nadu and West Bengal, respectively. Odisha exhibited the highest share of non-tax revenue in ORR at 49 per cent.
The revenue expenditure of the states grew at 12 per cent (YoY) during April to November 2024 (Chart I.42), with subsidies and committed liabilities30 registering a growth of 25.7 per cent and 10.4 per cent, respectively (Chart I.43). With expenditure on capital account for states declining by 5.6 per cent, total expenditure grew by 9.5 per cent. However, 11 states witnessed an increase in capex.
In the quality of expenditure, measured by capital outlay as a per cent of revenue expenditure over the five years ending FY24, states31 exhibited considerable variation. In April-November 2024, 11 States maintained revenue surplus (Chart I.45).The chart shows that revenue surplus (or lower revenue deficit) is corrleated with higher capital expenditure.
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