REVENUE COMPONENTS OF PUNJAB AND KERALA : AN IN-DEPTH ANALYSIS

Abstract [English]

The fiscal health of Indian states is closely tied to the composition and sustainability of their revenue structures. Punjab and Kerala, despite being economically vibrant in different sectors, represent contrasting models of revenue generation and fiscal management. This paper presents an in-depth comparative analysis of the revenue components of Punjab and Kerala, focusing on both tax and non-tax sources. Key revenue heads examined include the State Goods and Services Tax (SGST), excise duties, stamp and registration fees, and motor vehicle taxes, along with non-tax revenues such as interest receipts, dividends, and fees for public services.
While Punjab’s revenue system is heavily dependent on agriculture and central transfers, it struggles with persistent fiscal deficits due to rising subsidies, particularly in the power and agriculture sectors. In contrast, Kerala demonstrates a more diversified revenue base, drawing from tourism, remittances, and service-sector growth, though it also faces challenges of high debt and expenditure commitments. Through a comparative statistical and trend analysis, this study highlights the strengths and vulnerabilities of both states’ revenue models.
The findings suggest that Punjab requires urgent reforms in tax administration and diversification beyond agriculture, while Kerala must address its increasing debt burden despite a relatively stronger revenue performance. The paper concludes by emphasizing the importance of efficient fiscal planning, policy innovation, and balanced revenue mobilization for achieving long-term financial sustainability in both states.