Measuring tax buoyancy differentials among major Indian states

Based upon a multiplicity of suitable time series analytical techniques, the present paper aims at measuring tax buoyancy in respect of seventeen major Indian states, as also at making an examination of differentials, if any, among the buoyancy values duringpre-and post-reforms period. As per the main findings, the buoyancy coefficievts were generally less than unity, thus implying the prevalence of rather low responsiveness of taxes to income. The analysis further revealed that the buoyancy coefficients in respect of each of Total Revenue, Tax Revenue and Non-Tax Revenue had a tendency to be relatively lower during post reforms period vis-à-vis the prereforms period, thus pointing towards a non-favourable impact of the LPG policy measures towards revenue generation.