MP becomes 2nd highest tax collector, registers 3.11 times growth in 6 yrs
Madhya Pradesh has registered the second highest growth in direct tax collections in the period between financial years 2008-09 and 2014-15, latest income tax figures released by the Centre show.indore Updated: May 20, 2016 16:59 IST
Madhya Pradesh has registered the second highest growth in direct tax collections in the period between financial years 2008-09 and 2014-15, latest income tax figures released by the Centre show.
The data reveals that MP’s direct tax collection jumped 3.11 times from Rs 4,589 crore to Rs 14,262 crore over the six-year period with a compound annual growth rate (CAGR) of 17.58%. Among larger states, Kerala was marginally ahead of MP with a growth of 3.20 times, while Sikkim and Mizoram topped the chart on a smaller base by registering collection of Rs 328.3 crore and Rs 39.7 crore respectively during 2014-15.
Increase in tax collections reflects state’s economic growth
Increase in tax collections reflects the state’s economic growth as salaried employees and businesses pay income tax, say experts. “It’s a pointer to more income being generated in the state. It’s also a reflection of growth in trade and industry largely on the back of infrastructure development,” ex-council chairman of Confederation of Indian Industry (CII), MP, Girish Mangla said.
15.4% jump in MP’s per capita net state domestic product
Economic Survey data released prior to this year’s union budget had also pointed to MP’s above-average performance. With a 15.4% jump in per capita net state domestic product (NSDP) in 2014-15 (NSDP measures volume of goods and services produced in a country except depreciation), the state has overtaken Odisha and is much ahead of Uttar Pradesh.
With 17.1% growth in NSDP during 2014-15, MP has come second to Bihar’s 17.2% growth during the period. The survey had pegged MP’s per capita NSDP income for 2014-15 at Rs 59,770, up by 15.4% from Rs 51,798 in 2013-14. The state, however, lags behind the national per capita NSDP income surpassing Rs 80,000.
State’s agriculture sector growing consistently high
Statistics show that MP’s agriculture sector has been growing consistently high because of farmer-friendly government policies such as higher minimum support prices, low interest loans, improvement in rural electricity supply and better availability of seeds and fertilisers. The state service sector has gained momentum while the industrial sector is growing at a relatively slower rate due to global economic slowdown and delay in getting environmental clearances during the 2009-2014 period.