At a time when GST rates have been lowered and states don’t receive GST compensation cess either, the own tax revenue (OTR) of states becomes more significant. businessline analysis of OTR data from CAG shows that the growth of this revenue has been sluggish for some of the top states in FY26.

Gujarat’s OTR for April–October 2025 has grown by about 13 per cent over last year. This is the highest increase among the 10 biggest states in India (by GDP). Growth of OTR in some of the larger states such as Tamil Nadu, Uttar Pradesh, Andhra Pradesh and Madhya Pradesh was anaemic, below 5 per cent. Only four of the ten large states have crossed half of their budgeted own tax collections by October 2025.

Analysts note that slower nominal GDP growth and low inflation could be among the key facto

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