Does government revenue converge across Indian states? Evidence from club convergence

While the bulk of studies in India examine convergence per-capita income or expenditures, we investigate whether there is any evidence government revenues and its various compositions by focusing a panel 22 Indian states for periods 1980–81 to 2014–15. To answer this question, present study employs Phillips Sul club technique. The results find single case total collected revenue account. Further, our also reveal presence three-club when disaggregate gross into capital receipts state-owned tax-revenue. From policy perspective, it important Central integrate all collection through tax devolution formula grants-in-aid.