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Taxing powers and developmental role of the Indian states: A study with reference to Kerala

Author

Listed:
  • R. Mohan

    (Centre for Development Studies)

  • D. Shyjan

    (Centre for Development Studies)

Abstract

The study analyses whether the growing State Domestic Product (SDP) of Kerala since the latter half of the 1980s, has acted as a larger resource base for the State and finds that it has not. While the inability to fully tap the existing resource potential could be cited as a reason, the paper argues that the main constraint is the limited taxing powers of the States. The Study concludes that the power to tax the services should be devolved from the Centre to the States, lest the fiscal dispossession should affect the sustainability of achievements, which made the development experience of Kerala unique.

Suggested Citation

  • R. Mohan & D. Shyjan, 2005. "Taxing powers and developmental role of the Indian states: A study with reference to Kerala," Centre for Development Studies, Trivendrum Working Papers 375, Centre for Development Studies, Trivendrum, India.
    • Handle: RePEc:ind:cdswpp:375
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    References listed on IDEAS

    as
    1. K. Ravi Raman, 2004. "The Asian Development Bank loan for Kerala (India): The adverse implications and search for alternatives," Centre for Development Studies, Trivendrum Working Papers 357, Centre for Development Studies, Trivendrum, India.
    2. Joel Slemrod, 1995. "What Do Cross-Country Studies Teach about Government Involvement, Prosperity, and Economic Growth?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(2), pages 373-431.
    3. P.B. Rakhe, 2003. "Estimation of tax leakage and its impact on fiscal health in Kerala," Centre for Development Studies, Trivendrum Working Papers 347, Centre for Development Studies, Trivendrum, India.
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    Cited by:

    1. T.M. Thomas Issac & R. Mohan, 2016. "Sustainable Consolidation: Suggesting the Way Ahead for Kerala," Working Papers id:10789, eSocialSciences.

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    More about this item

    Keywords

    Revenue Receipts; Tax Effort; SDP;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E69 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Other

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