Own Tax Revenue in economics refers to the income a government—particularly a state government—earns from taxes that it has the constitutional authority to levy and collect. For state governments in India, this includes taxes such as State Goods and Services Tax (SGST), excise duty on alcohol, stamp duty and registration fees, motor vehicle tax, land revenue, and entertainment tax (where applicable). These revenues are distinct from shared taxes (from the central government) and grants-in-aid.

Own tax revenue is a vital component of a government’s fiscal capacity and autonomy. It reflects the government’s ability to generate resources independently, enabling it to plan and implement development programmes without heavy reliance on central transfers or borrowings. A robust own tax revenue base indicates an effective tax administration, strong compliance, and a diversified economic structure.

For state governments, increasing own tax revenue is crucial for achieving financial sustainability, improving service delivery, and meeting the demands of decentralised governance. It also encourages accountability, as citizens are more likely to demand transparency and efficiency in spending when they contribute directly through taxes. Strengthening own tax revenue contributes to greater fiscal empowerment, enabling states to invest in infrastructure, education, health, and social welfare tailored to local needs.