Abstract

India has one of the fastest-growing economies in the world and its states make significant contributions to the national economy. This study examines five major revenue-generating states—Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka and Gujarat—during the period from 2004 to 2022. Revenue performance is assessed using the improvement index formula developed by Morris and Alpine in 1982. Revenue performance is derived from own tax revenue, non-tax revenue, the share in central taxes and grants-in-aid from the central government. Uttar Pradesh emerged as the state with the highest revenue generation. Revenue growth was observed in Tamil Nadu, Maharashtra and Karnataka between 2004-05 and 2019-20, while the COVID-19 pandemic caused a significant decline during 2020-21. The study recommends greater attention to tax and non-tax revenue sources to improve state revenue performance.