Economic Survey: States taking new initiatives to improve their revenue sources

The economic study said state governments are taking various initiatives ranging from increasing property tax and electricity charges to announcing new policies for the sale of alcoholic beverages and privatizing government public sector enterprises to improve their own sources of resource mobilization.

Citing an RBI report on municipal finances, the survey said property tax collection in India was much lower than in OECD countries, and there is significant variation in taxation across states with scope for widespread reform of property tax practices in India.

The survey said that Tamil Nadu, Telangana and Kerala had revised property taxes during the year to support their revenues, while Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, Haryana, Kerala, Assam and Puducherry had considered revising their energy tariffs during the financial year. 23. .

Countries that are able to generate more revenue on their own are less dependent on devolution and central grants

The survey also indicated that Uttar Pradesh has announced a new beverage policy that increases licensing fees, renewal fees, processing fees and registration fees across different categories of wines/distilleries.

She added, “In addition, many countries have also made efforts towards privatizing SPSEs (State Public Sector Enterprises) and liquidating assets in FY21 and FY22 to receive additional incentives from the Union Government.”

The survey said that these reforms would free money trapped in non-productive assets and free them for productive use.

The survey also highlighted other income generating measures adopted by the states such as the Assam Clearance Scheme to pay arrears, the one-off Haryana Scheme to settle old VAT dues, and the Assam and Kerala Green Tax to discourage old vehicles.