Intergovernmental Fiscal Transfers and Tax Collection of Indian States: Estimation from Panel Data Models
This study tries to empirically estimate the effects of the composition of intergovernmental transfers on tax collection across the Indian states by using panel regression model. As intergovernmental transfers constitute almost 47 per cent in total revenue of the states, it could play a vital role i...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Sciendo
2023-10-01
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| Series: | Acta Universitatis Sapientiae: Economics and Business |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/auseb-2023-0012 |
| _version_ | 1797653379344760832 |
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| author | Kumar Sumit Kaur Baljit |
| author_facet | Kumar Sumit Kaur Baljit |
| author_sort | Kumar Sumit |
| collection | DOAJ |
| description | This study tries to empirically estimate the effects of the composition of intergovernmental transfers on tax collection across the Indian states by using panel regression model. As intergovernmental transfers constitute almost 47 per cent in total revenue of the states, it could play a vital role in states’ own tax collection. The impact of different channels of federal transfers on tax capacities is examined among 25 Indian states over the period from 1991-92 to 2017-18. The study also attempted to capture the asymmetric effect of various forms of transfers, but findings reveal that only state plan grant has a significant effect on its own tax collection. The empirical evidence suggests that the composition of intergovernmental transfers has a dampening effect on states’ own tax revenue. Apart from transfers’ variables, the study incorporates socio-economic and certain political variables to estimate states’ own tax collections. |
| first_indexed | 2024-03-11T16:42:49Z |
| format | Article |
| id | doaj.art-edbc2d47d151497599468ed2052acaec |
| institution | Directory Open Access Journal |
| issn | 2360-0047 |
| language | English |
| last_indexed | 2024-03-11T16:42:49Z |
| publishDate | 2023-10-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Acta Universitatis Sapientiae: Economics and Business |
| spelling | doaj.art-edbc2d47d151497599468ed2052acaec2023-10-23T07:51:37ZengSciendoActa Universitatis Sapientiae: Economics and Business2360-00472023-10-0111125827110.2478/auseb-2023-0012Intergovernmental Fiscal Transfers and Tax Collection of Indian States: Estimation from Panel Data ModelsKumar Sumit0Kaur Baljit1Punjab School of Economics, Faculty of Economics and Business, Guru Nanak Dev University, Amritsar, IndiaPunjab School of Economics, Faculty of Economics and Business, Guru Nanak Dev University, Amritsar, IndiaThis study tries to empirically estimate the effects of the composition of intergovernmental transfers on tax collection across the Indian states by using panel regression model. As intergovernmental transfers constitute almost 47 per cent in total revenue of the states, it could play a vital role in states’ own tax collection. The impact of different channels of federal transfers on tax capacities is examined among 25 Indian states over the period from 1991-92 to 2017-18. The study also attempted to capture the asymmetric effect of various forms of transfers, but findings reveal that only state plan grant has a significant effect on its own tax collection. The empirical evidence suggests that the composition of intergovernmental transfers has a dampening effect on states’ own tax revenue. Apart from transfers’ variables, the study incorporates socio-economic and certain political variables to estimate states’ own tax collections.https://doi.org/10.2478/auseb-2023-0012intergovernmental transferspolitical factorsstate tax collectionindian statesh77p35p16h71 |
| spellingShingle | Kumar Sumit Kaur Baljit Intergovernmental Fiscal Transfers and Tax Collection of Indian States: Estimation from Panel Data Models Acta Universitatis Sapientiae: Economics and Business intergovernmental transfers political factors state tax collection indian states h77 p35 p16 h71 |
| title | Intergovernmental Fiscal Transfers and Tax Collection of Indian States: Estimation from Panel Data Models |
| title_full | Intergovernmental Fiscal Transfers and Tax Collection of Indian States: Estimation from Panel Data Models |
| title_fullStr | Intergovernmental Fiscal Transfers and Tax Collection of Indian States: Estimation from Panel Data Models |
| title_full_unstemmed | Intergovernmental Fiscal Transfers and Tax Collection of Indian States: Estimation from Panel Data Models |
| title_short | Intergovernmental Fiscal Transfers and Tax Collection of Indian States: Estimation from Panel Data Models |
| title_sort | intergovernmental fiscal transfers and tax collection of indian states estimation from panel data models |
| topic | intergovernmental transfers political factors state tax collection indian states h77 p35 p16 h71 |
| url | https://doi.org/10.2478/auseb-2023-0012 |
| work_keys_str_mv | AT kumarsumit intergovernmentalfiscaltransfersandtaxcollectionofindianstatesestimationfrompaneldatamodels AT kaurbaljit intergovernmentalfiscaltransfersandtaxcollectionofindianstatesestimationfrompaneldatamodels |