Gujarat, Maharashtra and Haryana have recorded highest trend growth rate in terms of per capita income (PCI) during 2004-2013 amid high income states, according to Assocham study.
"These three states amid high-income states have taken a massive leap forward from an annual PCI trend growth rate of 2.9%, 2.8% and 3.7% during decade of 1993-2004 to 8.2%, 7.2% and 6.9%," according to the study.
With annual PCI trend growth rate of 6% and 4.8% respectively, the states of Kerala and Punjab have also remained ahead in this aspect, noted the study prepared by The Assocham Economic Research Bureau (AERB).
In case of low income states, Bihar has remained on top with an annual PCI trend growth rate which had increased from 1.1% during 1980-93 and 1.7% during 1993-2004 to 7.2% during 2004-13.
With a median value of 12.02% of nominal gross domestic product (GDP) between FY 2006 and FY 2012, Gujarat has emerged as a leader amid high income states, while national median value of nominal GDP remained at 8.37%, further highlighted the Assocham study.
Amid other high income states, Tamil Nadu has ranked second with a median value of 11.74% followed by Maharashtra (10.78%), Andhra Pradesh (10.10%) and Haryana (9.2%).
However, Maharashtra has ranked on top in terms of states' own tax revenue, share in Central taxes, states' own non-tax revenue and grants from the Centre, while Gujarat is ranked second in this behalf, noted the Assocham study.
Maharashtra is leading state in terms of fiscal management amid high income states as it has witnessed a significant surge in states own tax revenue which has increased from over Rs 876 billion in FY 2011-12 to over Rs 1 trillion in FY 2013-14 thereby clocking a growth rate of over 22%.
Similarly, Maharashtra's share in central taxes has increased at a growth rate of about 36% thereby increasing from over Rs 133 billion to over Rs 181 billion during the aforesaid period.
Besides, in terms of states own non-tax revenue has increased from over Rs 81 billion to over Rs 119 billion at about 47% growth rate and grants from the Centre too have increased at about 53% from over Rs 121 billion to over Rs 186 billion.
While, clocking a growth rate of over 36%, Gujarat's own tax revenue grew from over Rs 442.50 billion to over Rs 602 billion during FY 2011-12 and FY 2013-14 while the state's share in Central taxes grew at over 5% from over Rs 77 billion to about Rs 82 billion.
Besides, growing at about 21% and about 55%, Gujarat’s own non-tax revenue and grants from the Centre have respectively grown from over Rs 52 billion to over Rs 63 billion and from over Rs 58 billion to over Rs 90 billion, added the Assocham study.
While amid low income states, Bihar has ranked on top with states own tax and non-tax revenues clocking a growth rate of over 66% and about 284% i.e. from over Rs 126 billion to over Rs 209 billion and from about Rs 8.9 billion to over Rs 34 bilion respectively during 2011-12 and 2013-14.
"The wide introduction of value added tax (VAT) at state-level has significantly raised states' revenue from their own taxes despite many glitches at an early stage and they are now converging towards growth rate of high income states," said DS Rawat, national secretary general of Assocham.
The emerging picture of growth of states shows that while the high-income states in the country continue to grow, the low-income states are also catching up with them, said the Assocham study.
