An Analysis of Non Tax Revenue Buoyancy in India

The fiscal Performance has been sharp deterioration at both the level of Governments. Governments’ resources are inadequate for meeting their requirements. Tax buoyancy plays a key role to make fiscal policy. This paper deals with the time series data of non tax revenue data of India for the period of 2000–01 to 2010–10. This paper is attempted to investigate the buoyancies of non tax revenue's different unit of the country. Buoyancy coefficient is an indicator to measures the total response of non-tax revenue (NTR) to change in income; the effects of change in inflation are included in the calculation of buoyancy. The buoyancy coefficient of total non-tax revenue receipts has exhibited 0.48 in this sense that the buoyancy value of non-tax revenue is less than one indicating that non-tax revenue is an insignificant source of generating revenue capacity.