Question : Revenue Transfer to States

(a) the detail of the gross tax and non-tax revenue collected by the Government and transfer to States during the last three years and the current year, State-wise;
(b) the ratio thereof in percentage of Gross Domestic Product (GDP) and gross revenue collection of Governments during the said period;
(c) whether the Government has received any complaints/representations form States about unequal distribution of their shares; and
(d) if so, the details thereof along with the response of the Government thereon?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ARJUN RAM MEGHWAL)

(a) (i) Details of Gross Tax and Non-Tax Revenue from 2013-14 to 2016-17 are as under:
(` Crore)
Year 2013-14 (Actual) 2014-15 (Actual) 2015-16 (RE) 2016-17 (BE )
Gross Tax Collection 1138734.74 1244884.53 1459611.09 1630887.81
Non-Tax Revenue 198869.69 197857.38 258575.54 322921.10
Gross Revenue Collection 1337604.43 1442741.91 1718186.63 1953808.91

(ii) Details of Share of net proceeds of Central Taxes and Duties transferred to States are as under:
(` Crore)
2013-14 (Actual) 2014-15 (Actual) 2015-16 (Actual) 2016-17 (BE) 2016-17 (Upto August, 2016)
318229.60 337808.45 506192.96 570336.59 203688.30

State-wise details are enclosed as Annexure ‘A’.



(b) Share of net proceeds of Central Taxes and Duties transferred to States as percentage of Gross Domestic Product (GDP) and Gross Revenue collection are as under:
(` Crore)
Year 2013-14 (Actual) 2014-15 (Actual) 2015-16
(Actual) 2016-17 (BE )
Share of Central Taxes & Duties released to States as percentage of Gross Revenue Collection 23.79% 23.41% 29.46% 29.19%
Share of Central Taxes & Duties released to States as percentage of Gross Domestic Product 2.80% 2.67% 3.73% 3.79%


(c)
& (d) Assam, Bihar, Tamil Nadu & Uttarakhand have represented about unequal distribution of shares in Tax devolution. The Fourteenth Finance Commission (FFC) while determining the inter-se share of the States, aimed to correct the differentials in revenue raising capacity and expenditure needs, taking into account the cost disability factors to the extent possible. The Commission had the view that the devolution formula should continue to be defined in such a way that it attempts to mitigate the impact of the differences in fiscal capacity and cost disability among States. While doing so, Commission had kept in view the approaches suggested by individual States for horizontal distribution. Accordingly, Commission had decided following criteria and weights assigned for inter-se determination of the Shares of taxes for the States:-

Criteria Weight (Per Cent)
Population 17.5
Demographic Change 10
Income Distance 50
Area 15
Forest Cover 7.5
The FFC recommended enhancement in the share of the States in the divisible pool of central taxes from 32% to 42%, which the Union Government accepted. This envisioned giving greater and real meaning to cooperative federalism and keeping in view the sentiments expressed by the States regarding greater flexibility and autonomy in designing, implementing and financing of schemes. This would in absolute terms, more than compensate the fall in relative shares of certain states. Hence in real terms, all states would stand to gain from the FFC recommendation.
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Annexure ''A''

Statement showing year-wise releases of States'' Share of Union Taxes and Duties made
to the State Governments.
(` Crore)
Actual Actual Actual BE 2016-17 (Upto August, 2016)
Sl.No. State 2013-14 2014-15 2015-16 2016-17
1 Andhra Pradesh 22131.88 13692.42 21893.79 24637.36 8798.91
2 Arunachal Pradesh 1045.85 1109.98 7075.58 7868.96 2810.33
3 Assam 11574.52 12283.71 16784.88 18938.27 6763.56
4 Bihar 34829.12 36963.07 48922.68 55233.71 19726.01
5 Chhattisgarh 7880.22 8363.03 15716.47 17644.38 6301.48
6 Goa 848.53 900.54 1923.76 2156.77 770.28
7 Gujarat 9701.93 10296.35 15690.43 17669.03 6310.28
8 Haryana 3343.24 3548.09 5496.22 6188.80 2210.29
9 Himachal Pradesh 2491.52 2644.17 3611.17 4074.67 1455.21
10 Jammu & Kashmir 4142.10 4477.23 7813.48 8892.09 3175.70
11 Jharkhand 8939.32 9487.01 15968.75 17956.38 6412.82
12 Karnataka 13808.28 14654.25 23983.34 26978.84 9635.13
13 Kerala 7468.68 7926.29 12690.67 14282.00 5100.66
14 Madhya Pradesh 22715.27 24106.99 38397.84 43211.39 15432.38
15 Maharashtra 16586.70 17602.97 28105.95 31627.09 11295.24
16 Manipur 1438.79 1526.95 3142.42 3524.42 1258.72
17 Meghalaya 1301.96 1381.69 3276.46 3668.82 1310.27
18 Mizoram 858.08 910.67 2348.11 2627.17 938.27
19 Nagaland 1001.27 1062.69 2540.72 2844.82 1015.97
20 Orissa 15247.09 16181.21 23573.75 26567.56 9488.24
21 Punjab 4431.47 4702.97 8008.90 9005.09 3216.01
22 Rajasthan 18673.07 19817.14 27915.93 31477.89 11241.94
23 Sikkim 762.62 809.33 1870.28 2094.95 748.23
24 Tamil Nadu 15852.76 16824.03 20353.86 23018.12 8220.57
25 Telangana 9795.40 12350.72 13955.35 4983.97
26 Tripura 1630.25 1730.13 3266.02 3667.01 1309.62
27 Uttar Pradesh 62776.68 66622.91 90973.66 102649.92 36660.03
28 Uttaranchal 3573.38 3792.30 5333.19 6014.46 2147.94
29 West Bengal 23175.02 24594.93 37163.93 41861.27 14950.24
TOTAL 318229.60 337808.45 506192.96 570336.59 203688.30

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