RAS question
The largest source of tax revenue for the Rajasthan government is:
Correct answer: (D) GST (State's share).
GST, specifically the State Goods and Services Tax component, is the largest source of tax revenue for the Rajasthan government.
Explanation
Rajasthan's own-tax-revenue table in the Budget at a Glance lists State Goods and Services Tax as the largest tax head. State Goods and Services Tax stands at 61,70,000.00 in one column and 72,50,000.00 in the next, while Stamps & Registration is much lower at 15,00,000.00 and 18,75,000.00. Land Revenue is smaller still. Rajasthan's overall receipts include other categories, but its tax revenue is led by State Goods and Services Tax. Within Rajasthan's tax-revenue heads, the State's GST share outranks Stamp Duty and Registration fees.
Why the other options are wrong
- (A) Land Revenue appears in the own-tax-revenue table, but its figures are far below State Goods and Services Tax, so it is now only a minor tax source.
- (B) Stamp Duty and Registration is a significant tax head, but its budget figures remain below State Goods and Services Tax.
- (C) Income Tax is a central tax rather than Rajasthan's own tax head, so it is not the State government's largest tax-revenue source.
Concept
Rajasthan's own tax revenue is a recurring RAS economy theme because budget tables require candidates to distinguish State tax heads from central taxes and non-tax receipts.