Economics • Indian EconomyMedium
Analyze the fiscal architecture of Haryana as reflected in its annual state budget documents. What structural trend characterizes the state's tax revenue collection performance?
A. State Own Tax Revenue is heavily driven by Goods and Services Tax collections, stamp duties, and state excise on liquor✓ Correct Answer
B. Over ninety percent of state revenue originates exclusively from central government disaster relief grants
C. Agricultural income tax constitutes the single largest component of state tax receipts
D. Export tariffs levied on international trade form the primary source of state government income
💡 Solution & Explanation
Haryana's own tax revenue relies substantially on state GST collections, stamp duty from real estate transactions, and state excise duties, which together provide the fiscal space for capital expenditure and social welfare schemes. Fiscal federalism in India grants states specific taxation powers while ensuring compensatory revenue-sharing mechanisms. Sound fiscal management requires maintaining manageable fiscal deficits in compliance with fiscal responsibility legislation.
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