CAG State Finances Report 2023–24: Revenue capacity continues to vary widely among states
The CAG of India’s report on State Finances 2023–24 shows that Indian states rely heavily on their own tax revenue, which accounts for 50% of total revenue and 6.49% of GSDP. The introduction of GST has changed the composition and growth of SOTR, but there are discrepancies among states in their ability to generate own tax revenue, with some depending heavily on central transfers.