UGC Approved Journal no 63975(19)

ISSN: 2349-5162 | ESTD Year : 2014
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Published in:

Volume 9 Issue 12
December-2022
eISSN: 2349-5162

UGC and ISSN approved 7.95 impact factor UGC Approved Journal no 63975

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JETIR2212077


Registration ID:
504895

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a639-a654

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Title

Pay Commission in India: Economic Implications

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Abstract

Abstract:- The revenue profile of the Centre has its own significance as pay and allowance and pension burden is financed using the revenues generated by the government. Also, the Centre has to share the taxes with the States as mandated by the constitution. Therefore, it is the responsibility of the Centre to manage the revenue in such a manner that it is able to meet the committed liabilities without jeopardizing its fiscal space. Salary is treated as consumption expenditure and it would not be sensible on the part of the government to meet these liabilities by borrowing and increasing its debt burden. The instruments used by the Central Government to generate revenues are direct taxes, indirect taxes and non-taxes. There are capital receipts as well which comprises of recoveries of loans provided to State and foreign governments, Public Sector Enterprises and Union territories as well as receipts from disinvestment. But these receipts do not come in the ambit of revenue receipts. Table 4.2 below presents the composition of the Central Government’s revenue receipt and the growth rate. Interestingly, the composition of the total revenue being generated from different sources has shifted considerably over the period 1995-96 to 2015-16. Direct taxes net of share meant for States, indirect taxes and non-tax revenues were approximately around 20 per cent, 54.2 per cent and 25.6 per cent in 1995-96. The combined share of direct and indirect taxes was around 75 per cent and has increased consistently and is around 80 per cent today. However, over time the share of indirect taxes has been coming down while direct taxes have been increasing. The share of non-tax revenue have shown a decline during the years when the recommendations of the 6th Pay Commission were implemented. Also, the rate of growth of revenues being generated from direct and indirect taxes are lower during these years. The rate of growth of direct taxes was 7.1 per cent in 1997-98, 7.2 per and 9.5 per cent in 2008-09 and 2009-10. The growth in indirect taxes for these years is 0.3, -6.2 and -5.3 per cent respectively. The rate of growth of direct taxes and indirect taxes has been particularly high in years preceding the 6th Pay Commission. The growth rate in direct taxes was 40.6 per cent in 2006-07 and 36.4 per cent in 2007-08, while indirect taxes were 21.3 per cent and 14.6 per cent. Notably, tax breaks were provided during this time to counter the slowdown in India.

Key Words

Pay Commission,Economic Implications

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"Pay Commission in India: Economic Implications", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 12, page no.a639-a654, December-2022, Available :http://www.jetir.org/papers/JETIR2212077.pdf

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2349-5162 | Impact Factor 7.95 Calculate by Google Scholar

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 7.95 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

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"Pay Commission in India: Economic Implications", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 12, page no. ppa639-a654, December-2022, Available at : http://www.jetir.org/papers/JETIR2212077.pdf

Publication Details

Published Paper ID: JETIR2212077
Registration ID: 504895
Published In: Volume 9 | Issue 12 | Year December-2022
DOI (Digital Object Identifier):
Page No: a639-a654
Country: Meerut, UP, India .
Area: Arts
ISSN Number: 2349-5162
Publisher: IJ Publication


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