Punjab’s Fiscal Sustainability: A Two - Decade Analysis of Persistent Revenue Deficits (2004-2024) Chapter 7 | New Advances in Business, Management and Economics Vol. 11

 

This chapter examines Punjab’s revenue receipts, expenditure patterns, and revenue deficits from 2004 to 2024 to assess fiscal sustainability and policy effectiveness. A comprehensive analysis was undertaken by examining the components of both revenue receipts and revenue expenditure to identify the key components contributing to the revenue deficit. In addition to this, the percentage composition of components of Revenue receipts and expenditure was calculated to study the relative contribution. Thereafter, a descriptive and qualitative study of each component was undertaken through audit reports, government publications and research studies to enable a deep understanding of the underlying trends and drivers of Punjab’s revenue imbalance. Drawing on data from the Comptroller and Auditor General (CAG), PRS Legislative Research, NITI Aayog, and state budget documents, the study highlights persistent structural fiscal imbalances driven by high committed expenditures on salaries, pensions, interest payments, and subsidies. Despite growth in total revenue receipts from ₹13,807 crore in 2004-05 to ₹98,852 crore in 2023-24, revenue expenditure has risen faster, widening the revenue deficit from ₹3,391 crore to ₹24,589 crore. The Dependence on central transfers has increased, while own-tax and non-tax revenues remain constrained by a narrow tax base and low PSU returns. The analysis identifies episodic revenue declines linked to non-tax revenue shortfalls and external shocks, and underscores the impact of high interest payments on development spending. Policy recommendations include subsidy rationalisation, structural revenue reforms, debt management strategies, enhanced capital expenditure, industrial diversification, and promotion of renewable energy initiatives. The findings are significant in terms of policy formation as they provide insights into major causes of persistent fiscal stress in Punjab. Further, the policy recommendations based on these findings offer a roadmap for improving/correcting fiscal health and creating a sustainable public finance management.

 

 

Author(s) Details

Anjana Nagpal
Economics, DGC, Gurugram, Haryana, India.

 

Please see the book here :- https://doi.org/10.9734/bpi/nabme/v11/6556

Public Finance and Taxation in Kenya: Tools and Theories at the Service of Citizens | Book Publisher International

 Public finance is an economic activity in which financial resources are used to meet public policy objectives. To maximise its citizens' social, political, and economic welfare, the government raises revenue and spends it on public goods and services. Apart from ensuring price stability, public finance plays a critical role in supporting economic growth in emerging countries. PEM (Public Expenditure Management) is a procedure that helps governments to be fiscally responsible (spend only what they can afford), spend wisely, and maximise limited public resources. Parliament's function in public finance is that of a watchdog. Parliament passes legislation that gives ministers the authority to carry out their policies. To provide transparent financial management and standard financial reporting, design and prescribe an effective financial management system for national and county governments. Kenya's tax system is complex, encompassing income taxes, value-added taxes, and customs and excise duties. These are governed by separate laws that regulate the charging, assessment, and collection of the applicable taxes.

Author(s) Details

John O. Messo Raude
Managing Partner, Messo and Associates, Certified Public Accountant, Kenya.

View Book:- https://stm.bookpi.org/PFTKTTSC/article/view/6431

Assessing the Effectiveness of the Tax System in Ghana as a Tool for Economic Development: A Recent Study | Chapter 8 | Modern Perspectives in Economics, Business and Management Vol. 8

 The Ghanaian economy's primary source of revenue is taxation. Taxation is defined as the collection of mandatory contributions by public authorities with tax jurisdiction in order to cover the costs of their operations. The researcher wants to see how effective it is in terms of the country's economic development. He also examines Ghana's tax collection system. According to the study, Ghana's tax income to Gross Domestic Product (GDP) ratio was 14.56 percent from 1990 to 2016. This is deemed insufficient to make a significant contribution to the country's fortunes. The informal sector, which accounts for 70% of the country's output, is home to the majority of tax evaders. Despite its enormous size, the informal sector only contributes 16.7% of total tax revenue. The researcher also compares Ghana's direct and indirect taxes, as well as their apparent impact on people's socioeconomic lives. The analysis shows that the government is overly reliant on indirect taxes, to the cost of the underprivileged in society, thereby undermining the taxation canon of equality.

Author (S) Details

Dickson Akoto
Radford University College, Accra, Ghana, P.O.Box AF 419, Adenta, Accra, Ghana.

View Book :- https://stm.bookpi.org/MPEBM-V8/article/view/3652