Contact: +91-9711224068
International Journal of Applied Research
  • Multidisciplinary Journal
  • Printed Journal
  • Indexed Journal
  • Refereed Journal
  • Peer Reviewed Journal

ISSN Print: 2394-7500, ISSN Online: 2394-5869, CODEN: IJARPF

IMPACT FACTOR (RJIF): 8.4

Vol. 8, Issue 4, Part C (2022)

The importance of local taxes in the state budget: A study in the perception of Indian States

The importance of local taxes in the state budget: A study in the perception of Indian States

Author(s)
Dr. Jaya Bhandari
Abstract
The purpose of this article is to determine the importance of local taxes and charges in generating revenue for local budgets, as well as to perform a comparative analysis of Indian states that identify the legal foundation for generating revenue for local budgets through local taxes. The tax structure of India's major states was examined in this study. The purpose of this study is to use a regression model to compare tax revenue growth between states. Tax capacity is found to be influenced by “per capita income, agricultural activity, infrastructure, labor force, and bank credit”, whereas tax effort is influenced by government investment on the social sector and central transfers to states. The GST has limited the taxing authority of governments. As a result, the states' revenue mobilization is heavily reliant on their restricted legislative taxes. However, because all states have reached at least 90% of their tax capacity, there is little room for subnational state governments to raise money. The state collects a tax as a contribution.It is a non-punitive, but compulsory and unrequited transfer of resources from the private to the public sector, depending on pre-determined criteria. The Indian states generate about 65 percent of their money from their own sources, with the remaining 35 percent coming from federal transfers. The sole purpose of taxation, according to traditional economists, was to raise income for the state government. Until the present time, the general analysis and conclusions were supplied. To achieve our goals, we used three separate strategies: information synthesis, analytical methods utilizing regression models to calculate data, and synthesis of information to provide literature background. There are also future action recommendations for state tax income.
Pages: 189-194  |  319 Views  49 Downloads
How to cite this article:
Dr. Jaya Bhandari. The importance of local taxes in the state budget: A study in the perception of Indian States. Int J Appl Res 2022;8(4):189-194.
Call for book chapter
International Journal of Applied Research
Journals List Click Here Research Journals Research Journals