There has been a decline in States’ own tax revenue and share in central taxes during 2008-09 (RE) over the budget estimates (BE). Despite this, consolidated revenue receipts in the RE have shown some improvement over the BE mainly on account of increase in States’ own non-tax revenues and grants from the Centre.
During 2009-10 at the consolidated level, States are expecting some recovery on account of States’ own tax revenue as well as in share in central taxes. However, States’ own non-tax revenue is budgeted to decline during 2009-10. As per the RE, aggregate expenditure of States for 2008-09 increased by 5.7 per cent over the BE largely on account of increase in capital outlay.