Mobilising resources through reforms in non-tax sources of the states serves the twin purpose of having a rational non-tax structure and generating greater means to achieve economic growth. Irrational structure of non-tax sources has adverse economic effects that invalidate growth objectives. From the economic point of view, therefore, one has to keep in mind the objectives of equity, efficiency and neutrality; especially the impact of these on the growth of the economy.

This study analyses the structure of non-tax sources of Indian States. Also, the major thrust is on presenting a detailed analysis of ten select services drawn from general, social and economic services. The select services are public works; education; sports, arts and culture; medical and public health; water supply and sanitation; forestry and wild life; major and medium irrigation; minor irrigation; industries; mines and minerals; and roads and bridges. These ten services account for about 2/3rd to 3/4th of the administrative component of the non-tax revenue of different States. The analysis of user charges at the disaggregated level for each of the services provided in different States is based on the data drawn from the State Budget documents. A comparative analysis of Recovery Rates (RRs) over time is based on the results for two points of time, i.e. 1993-94 to 1995-96 and 200 1-02 to 2003-04. RR is defined as revenue receipts from the service as percent of revenue expenditure on service. The results of RRi (recovery rate from. the ith service) among the States are based on normative approach using panel data models. Finally, the study puts forth policy imperatives for proper pricing of services to use this as a major source of budgetary receipts for the States.








 Rs. 700/- 

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Pages x +221 ** 

Cloth Bound

2010 First Edition**

Preface / List of Tables I List of Exhibits I Introduction I Fiscal Significance of Statesí Own Non-tax Sources I Pricing Strategy for Non-tax Sources / Revenue Realization from Non-tax Sources / Rationalising Structure of Non-tax Sources I Procedural Reforms and Issues in Delivery of Services I Issues and Policy Imperatives I List of Annexures I References I Index.

Dr. Mahesh C. Purohit
is Director of the Foundation for Public Economics and Policy Research. He has been Member-Secretary of the Empowered Committee of State Finance Ministers to Monitor Sales Tax Reforms, Secretary to the Committee of State Finance Ministers (1998), and Secretary to the Committee of Chief Ministers on VAT and Incentives to Backward Areas (1999). Dr. Purohit has been a Professor at the National Institute of Public Finance and Policy, New Delhi, a Senior Research Fellow at the Centre for Advanced Studies in Industrial Economics and Public Finance, University of Bombay and a Post-Doctoral Fellow at the Department of Economics, University of California, USA. He has also been a visiting Professor at the Institute of Fiscal and Monetary Policy, Tokyo; and International Tax Programme, Harvard Law School, Cambridge, M.A. As part of his work on commodity taxes, Prof. Purohit has visited many countries such as Bangladesh, Belgium, Bhutan, Brazil, Canada, France, Korea, Japan, Singapore and United Kingdom. He has undertaken many international assignments that include his working for the UNDP as an Advisor in Tax Policy and Chief Technical Advisor and with the IMF as a Member of a Fiscal Mission.

Dr. (Mrs) Vishnu Kanta Purohit is Associate Professor in Economics at the lndra Prastha College for Women, University of Delhi. Earlier, she has worked as a teaching faculty of the Department of Economics, University of Rajasthan, Jaipur; and at the Ahmedu Bello University of Zaria, Nigeria. She has also worked as Senior Research Fellow at the Department of Economics, University of California, Berkeley (USA) and at the Gokhale Institute of Politics and Economics, Pune. Dr. Purohit has also been a visiting professor at the Maison des Sciences De Lí Homme, Paris (France). Dr. (Mrs.) Purohit has written many books and articles in the area of public finance and industrial economics.

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