The contribution of State’s own tax revenue (SOTR) to Tamil Nadu’s overall tax revenue has been stable at over 70%, according to data shared in the Reserve Bank of India’s report titled ‘State Finances: A Study of Budgets of 2023-24’.
As per data, SOTR accounted for 78.8% of Tamil Nadu’s total tax revenue during the pre-GST period of 2015-16 to 2016-17. During the post-GST and pre-COVID period of 2018-19-2019-20, the share of SOTR stood at 79.1%. Post-COVID, the SOTR share was 78.9%, it said.
There was a large spatial variation in SOTR, ranging from more than 70% of total tax revenue in Haryana, Maharashtra, Telangana, Tamil Nadu, Gujarat, Karnataka, Kerala and Punjab to less than 50% in Bihar and Jharkhand, the RBI said. Uttar Pradesh share of SOTR ranged from 45.6%-54%, while that of Madhya Pradesh it was around 50-51%.
