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Economic
Development Policy |
| STATE
FINANCES |
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The
state generates more than 60% of its revenues from own (tax and non-tax)
sources. There has not been any substantial change in the composition of
own revenues. Sales tax (about 45%) and state excise (18.5%) have been
the two most significant and steady contributors but the shares of
electricity duty and taxes on goods and passengers had fallen by a small
percentage in recent years.
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Level
and composition of Revenue receipts
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|
1993-94
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1994-95
|
1995-96
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1996-97
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1997-98
|
1998-99
|
|
Tot.Revenue
(Rs. Cr)
|
7069
|
7618
|
8653
|
10014
|
11257
|
11345
|
|
Own
Revenue %
|
57.72
|
58.88
|
61.20
|
60.70
|
58.48
|
60.73
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|
-Tax
Revenue %
|
37.87
|
37.68
|
40.66
|
40.98
|
40.55
|
45.02
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|
-Non-Tax
Revenue %
|
19.85
|
21.20
|
20.54
|
19.72
|
17.93
|
15.71
|
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Transfers
from Centre %
|
42.28
|
41.12
|
38.80
|
39.30
|
41.52
|
39.27
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|
-
Shared taxes %
|
23.78
|
24.62
|
25.36
|
26.32
|
29.55
|
25.84
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|
-
Grants %
|
18.50
|
16.50
|
13.44
|
12.98
|
11.97
|
13.43
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Composition
of own tax revenue (%) Average 1993-94 to 1998-99
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|
Sales
Tax
|
44.40
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|
Excise
Tax
|
18.51
|
|
Electricity
Duty
|
11.47
|
|
Tax
on Goods & Passengers
|
7.23
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|
Motor
Vehicles Tax
|
8.09
|
|
Stamp
Duty & Registration
|
7.71
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|
Land
Revenues
|
0.72
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|
Others
|
1.87
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Total
|
100.00
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|
Source:
White Paper on Economic and Financial Status in Madhya Pradesh, Feb.
1999
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Table
reveals that most major taxes are reasonably buoyant and there is
potential for increased mobilisation of revenues in future.
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Buoyancy
Coefficients of Major Taxes
(1993-94 to 1998-99)
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|
Own
Tax Rev.
|
Land
Rev-
enue
|
Stamp
Duty & Regn.
|
Sales
tax
|
Motor
Vehicles Tax
|
Pass-
enger
& Goods
Tax
|
Enterat-
inment.
Tax
|
State
Excise
|
Elect.
Duty
|
|
|
0.93
|
0.61
|
1.02
|
1.03
|
1.13
|
3.14
|
-
|
-0.12
|
-0.32
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Karnataka
|
0.83
|
1.42
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1.07
|
0.88
|
0.55
|
1.12
|
-0.06
|
0.56
|
1.15
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Kerala
|
0.84
|
0.43
|
0.31
|
0.95
|
0.90
|
-
|
-
|
0.60
|
0.69
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Tamil
Nadu
|
0.98
|
0.14
|
0.71
|
0.91
|
0.67
|
1.43
|
0.32
|
1.59
|
1.12
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Madhya
Pradesh
|
1.25
|
-0.07
|
1.39
|
1.22
|
1.18
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1.38
|
0.21
|
1.23
|
1.03
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Punjab
|
0.68
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-0.07
|
0.36
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0.64
|
0.88
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-
|
-
|
0.72
|
-1.57
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Maharashtra
|
0.86
|
0.26
|
1.23
|
0.74
|
1.4
|
0.16
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0.85
|
0.99
|
1.04
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Rajasthan
|
1.03
|
0.94
|
1.37
|
0.92
|
0.98
|
-
|
0.53
|
1.15
|
0.78
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Source:
Finance & Account Statistics of various years, Feedback research
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Arrears of Tax and Non Tax Revenues
Between
1992-93 and 1997-98, the growth rate of arrears was about 16.3% as
compared to about 9% for total revenue collection. Water charges, Sales
tax and Land revenue tax had the maximum deficit.
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Trend
of Arrears in Revenues, by major heads (in Rs. Cr.)
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|
|
1992-93
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1993-94
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1994-95
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1995-96
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1996-97
|
1997-98
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Growth
rate (%)
|
|
Arrears
|
Revenue
Receipts
|
|
Land
Revenue
|
60.57
|
55.15
|
57.91
|
60.81
|
63.84
|
66.6
|
2.79
|
-3.03
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|
Sales
Tax
|
69.32
|
90.07
|
101.53
|
114.24
|
146.55
|
199.78
|
21.69
|
13.93
|
|
|
1.85
|
31.61
|
36.6
|
48.29
|
42.96
|
28
|
52.56
|
14.03
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Excise
Duty
|
4.88
|
6.03
|
9.8
|
10.78
|
11.86
|
26.05
|
34.98
|
13.72
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Stamps
& Registration
|
1.22
|
1.72
|
3.06
|
3.37
|
3.7
|
9.58
|
43.74
|
17.28
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|
Vehicle
tax
|
32.88
|
38.85
|
41.73
|
50.03
|
27.09
|
238.76
|
37.91
|
14.43
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Water
Charges
|
103.37
|
125.51
|
126.36
|
128.49
|
125.03
|
135.24
|
3.93
|
3.66
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Interest
dues from
|
|
-
MPEB
|
2.74
|
11.15
|
17.17
|
0
|
0
|
0
|
|
-5.22
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|
-
MPSRTC
|
19.23
|
19.18
|
23
|
24.3
|
26.73
|
29.4
|
9.49
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Total
|
296.06
|
379.27
|
417.16
|
440.31
|
477.76
|
733.41
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16.29
|
8.98
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Source:
Finance & Account Statistics, CAG Reports,
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