Archive · 10 Dec 2025

Sluggish Own Tax Revenue Growth in Large States

Sluggish Own Tax Revenue Growth in Large States

The own tax revenue (OTR) of many large states in India is growing slowly.

Gujarat had the highest growth at 13%, while states like Tamil Nadu, Uttar Pradesh, and Andhra Pradesh had very low growth, below 5%.

Only four out of the ten largest states have collected more than half of their expected tax revenue for the year.

Experts say this is because the economy isn't growing as fast as before, and prices aren't rising much.

Since GST is a big part of their tax money, this could make it harder for states to manage their finances.

Some states expected big increases but didn't get them, which might mean they need to spend less or find other ways to get more money.

Sources