The per capita own tax revenue in the northeastern states of India is an essential indicator of internal fiscal capacity, economic formalisation, and financial self-sufficiency.
The per capita own tax revenue in the northeastern states of India is an essential indicator of internal fiscal capacity, economic formalisation, and financial self-sufficiency. Although the majority of northeastern economies are largely dependent on central transfers and grants-in-aid, increased per capita own tax collections reflect local economic strength and diminish total reliance on federal assistance. A rise in per capita own tax generation reduces dependence on unconditional central budget allocations, thereby providing state governments with enhanced autonomy in local policymaking. In Northeast India, per capita own tax revenue has experienced a consistent nominal increase over the past three years; however, it still falls considerably short of the national average.
In Nagaland, the per capita own tax revenue was approximately INR 6,585 for the fiscal year 2022-23, with projections of around INR 7,040 for 2023-24 and INR 8,013 for 2024-25. In Manipur, the per capita own tax revenue ranged from roughly INR 4,200 to INR 4,500 in 2022-23, increasing to approximately INR 4,630 in 2023-24 and INR 7,488 in 2024-25. In Meghalaya, the figures were about INR 8,934 in 2022-23, approximately INR 9,460 in 2023-24, and INR 11,885 in 2024-25. Mizoram's per capita own tax revenue was estimated at INR 8,162 in 2022-23, rising to INR 8,674 in 2023-24 and INR 10,499 in 2024-25. In Arunachal Pradesh, the estimated per capita own tax revenue was roughly between INR 13,500 and INR 14,500 in 2022-23, increasing to around INR 15,500 in 2023-24 and INR 17,700 in 2024-25. In Tripura, the per capita own tax revenue was about INR 7,210 per person in 2022-23, with estimates of roughly INR 8,100 to INR 8,300 in 2023-24, and an increase to approximately INR 8,900 to INR 9,200 in 2024-25. In Assam, the estimated per capita own tax revenue was about INR 7,437 in 2022-23, which rose to roughly INR 8,100 to INR 8,300 in 2023-24, and approximately INR 9,200 to INR 9,400 in 2024-25. Lastly, in Sikkim, the per capita own tax revenue was estimated to be around INR 22,000 to INR 23,000 in 2022-23, approximately INR 24,670 in 2023-24, and about INR 26,428 in 2024-25.
Table 1: Trends of Per Capita Own Tax Revenue in Northeast States (in INR)
| Arunachal Pradesh |
Assam |
Manipr |
Meghalaya |
Mizoram |
Nagaland |
Tripura |
Sikkim |
2022-23 | 13500 | 7437 | 4200 | 8934 | 8162 | 6585 | 7210 | 22000 |
2023-24 | 15,500 | 8100 | 4630 | 9460 | 8614 | 7040 | 8100 | 24670 |
2024-25 | 17700 | 9200 | 7488 | 11885 | 10499 | 8013 | 8900 | 26428 |
Source: calculated by author Based on a projected state population
In the period of 2021-22, the Northeast States recorded the highest per capita revenue from Land Revenue in Sikkim (INR 136.14), followed by Mizoram (INR 108.67), Assam (INR 52.46), and Arunachal Pradesh (INR 45.53). In the other Northeast States, the revenue was below INR 30, with Meghalaya at INR 29.79, Tripura at INR 21.80, Manipur at INR 10.47, and Nagaland at INR 5.59. The per capita revenue from State Excise varied from INR 14.92 in Mizoram to INR 3560.14 in Sikkim. For Sales Tax, the per capita revenue ranged from INR 1129.56 in Tripura to INR 3245.57 in Sikkim. The per capita revenue from SGST was between INR 3005.56 in Assam and INR 9365.00 in Sikkim. Among these Northeast States, Nagaland had the highest per capita revenue from Taxes on Vehicles at INR 641.09, while Manipur had the lowest at INR 177.09.
The maximum per capita revenue from Stamps and Registration fees was in Sikkim (INR 1293.95), and the minimum was in Nagaland (INR 15.41). In the fiscal year 2022-23 (RE), Mizoram led with the highest per capita revenue from Land Revenue at INR 158.33, followed by Arunachal Pradesh (INR 129.69), Sikkim (INR 122.86), and Assam (INR 95.03) among the Northeast States. The remaining states had revenues below INR 31, with Meghalaya at INR 14.76, Tripura at INR 30.71, Manipur at INR 21.88, and Nagaland at INR 5.68.
The per capita revenue from State Excise ranged from INR 12.50 in Mizoram to INR 4242.86 in Sikkim. Sales Tax per capita revenue varied from INR 958.50 in Mizoram to INR 3328.57 in Sikkim. The highest per capita revenue from SGST was in Sikkim (INR 11240.43), while Tripura had the lowest at INR 3558.63. In terms of Taxes on Vehicles, Sikkim had the highest per capita revenue at INR 657.14, and Manipur had the lowest at INR 177.09. Lastly, the maximum per capita revenue from Stamps and Registration fees was recorded in Assam (INR 532.33), with Nagaland again having the minimum at INR 15.41.
In the fiscal year 2023-24 (BE), Sikkim was projected to have the highest per capita revenue from Land revenue at INR 285.71, followed by Assam at INR 190.91, Mizoram at INR 162.50, Arunachal Pradesh at INR 138.81, Tripura at INR 33.60, Manipur at INR 24.91, Meghalaya at INR 17.21, and Nagaland at INR 6.23. The per capita revenue from State Excise varied from INR 14.77 in Nagaland to INR 4500.00 in Sikkim. Per capita revenue receipts from Sales Tax ranged from INR 1236.19 in Tripura to INR 4000.00 in Sikkim.
The per capita revenue from SGST varied from INR 3890.69 in Tripura to INR 13714.29 in Sikkim. Revenue from Taxes on Vehicles ranged from INR 313.48 in Tripura to INR 613.64 in Nagaland. The estimated per capita revenue from Stamps and Registration fees was lower than that of Sikkim (INR 385.71), Tripura (INR 273.43), Assam (INR 229.98), Mizoram (INR 120.67), Meghalaya (INR 95.50), and Nagaland (INR 14.32).
To enhance per capita own tax revenue in the Northeastern Indian states, it is essential to transition from a heavy dependence on central transfers to broadening local tax bases. Effective strategies include formalizing local micro-economies, capitalizing on high-value tourism, uncovering hidden property values, and optimizing royalties from natural resources.
Prof Mithilesh Kumar Sinha
Retired Professor
Nagaland University, Lumami