MOBILISATION of resources in various states is an intricate exercise involving balancing of current revenues, economic growth and political economy with political dimensions. Mobilising of resources through reforms in non-tax sources serves the dual purpose of having a rational non-tax structure and generating greater means to achieve economic growth. For this, planners have to keep in mind the objectives of equity, efficiency and neutrality, especially their impact on the growth of the economy.
This study presents measures for mobilising resources via reforms in non-tax sources while analysing the structure of state non-tax sources; examining the structural reforms and suggesting a non-tax structure which is economically viable and yields larger resources; suggesting fiscal measures in terms of procedural reforms for removing harassment to consumers of utilities making structural reforms politically palatable; and recommending reforms related to institutional preparedness as a prerequisite for mobilising additional resources.
The study hypothesizes that the non-tax revenues should form a sizeable portion of the state’s own revenue. The contribution of the states currently is about 19 per cent of their own revenue receipts.
Non-tax sources are defined as payment made to the government for which there is a quid pro quo and are classified into three categories: firstly, the sources that are compulsory and requited; secondly, voluntary and unrequited receipts including donations and contributions made to the government or any unclaimed funds lying with the government; thirdly, voluntary and requited payments including revenue earned from the resources owned by the government, such as forest, marine, riparian habitats and wild life.
This is a highly technical study meant fo planners, financial experts and economists.
(Gayatri Publications, P.B. No. 8495, Ashok Vihar,Delhi-110052;email: gayatri.publications@gmail.com)
