Trends in State Revenues in India: An Analysis

Abstract

Government Accounting is concerned with the identification, measurement and communication of information about the economic activities performed by the Governmental Entities. The sources of the State Government include both Revenue and Capital Receipts. The State Government also gets share from the Central Government Taxes. The Study is undertaken to analyze the Growth of Revenues of the States over a period of time; analyze the Trends in Revenue Receipts of the States over a period of time; and examine the extent of dependence of the States on the Central Government. Compound Annual Growth Rate, percentages, ratios and graphs are used for the analysis and presentation of the data. The study revealed that the Total Receipts, Revenue Receipts and Capital Receipts of the States have witnessed an increasing trend and the States dependence on the Centre has not increased indicating a higher revenue generation by the States themselves.