Breaking India State Business Entertainment Biography Lifestyle

18 states will boost the country’s economy, how much will their income increase?

Sagar Patel

By Sagar Patel

Published on:

The states of any country also have a very important contribution in boosting the economy of that country. If the economy and revenue of the states are good, the pace of the economy and the GDP of the country will also increase. This time, the CRISIL report that has arrived can be considered as very good news for the economy of the country. Crisil stated in its report that in the current financial year, there can be a good increase in the revenue of 18 states of the country. The special thing is that these 18 federated states account for more than 90 percent of the GDP of the country. Shall we also tell you what CRISIL has said in its report?

90 percent contribution to GDP

Credit rating agency CRISIL Ratings said in a report that revenues of the country’s top 18 states are expected to rise by 8-10 per cent to Rs 38 lakh crore in the current financial year 2024-25. These 18 states contribute 90 per cent to India’s gross state domestic product. In the last financial year 2023-24, revenues of these states rose by seven per cent. According to the report, this increase will be mainly due to strong GST collections and transfer of funding from the Centre, which accounts for around 50 per cent of total state revenues. It said revenues from liquor sales are likely to remain stable but sales tax collections imposed on petroleum products and subsidies recommended by the 15th Finance Commission will remain modest. Revenues earned from liquor sales contribute 10 per cent of the total revenues of states.

What did the CRISIL director say?

Anuj Sethi, Senior Director, CRISIL Ratings, said the biggest boost to revenue growth will come from overall state GST collections, better tax compliance and a more organised economy. States’ share of central taxes is expected to rise by 12-13 per cent in the current financial year. At the same time, the Centre’s subsidy will increase by four to five per cent, which is in line with budgetary expenditure. According to CRISIL Ratings, estimates put real GDP growth at 6.8 per cent in the current financial year. To ensure sustainable revenue growth, states will have to focus on expanding their revenues and improving collection efficiency.

read this too

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

Related Post

Leave a comment

x