The excess of cess.

"The budget continues to be seen as the centerpiece of the State's annual economic planning, even though its importance has been dipping in recent years." HT. "In some ways the Indian State is still considered the proverbial mai baap (benefactor of last resort)." Also, "Decisions on taxes on profits or capital gains can have a significant impact on the finances of companies and high net-worth individuals." "The 2022-23 Budget assumed a nominal GDP growth of 11.1% for the Indian economy. First advanced estimate of GDP for 2022-23 put India's nominal GDP growth to be 15.4%," wrote Pavitra Kanagaraj. Since taxes are collected on the nominal GDP, higher collections are to be expected for the last financial year. The 15th Finance Commission has mandated that the Centre transfer 41% of its gross tax revenue to states." However, states will get only 29.6% of revenues in 2022-23. In 2021-22, the central government raised 28% of gross revenue through cess and surcharges which it does not share with the states. TNIE. Why this is not labeled as robbery is a mystery. "In the 2022-23 Budget estimate of revenue earned from GST (goods and services tax) was Rs 7.8 lakh crore (Rs 7.8 trillion) compared to Rs 7.2 trillion from corporation tax and Rs 7 trillion from income tax." TOI. India's labor force participation rate (LFPR), which is the ratio of the population employed or looking for work, was 47.5% in the second quarter of 2022, TE, which means that over half the population had dropped out of the workforce. "With poor quality employment and low wages, the share of those earning more than Rs 250,000 per annum or about Rs 21,000 per month, the level above which income tax applies, is very small." By equalizing taxes throughout India it was thought, that GST would increase investment in poorer states where land and labor should be cheaper and, since the richer states are the manufacturing ones, the poorer states will get a higher share of GST because it is a consumption-based tax. However, "over half of the proposed industrial investment - including capacity expansions - are still accounted for by just three, relatively industrialised states: Gujarat, Maharashtra, and Karnataka. Ten states account for over 85% of investment proposals made between 2018 and August 2022." Mint. "As it turns out, more industrialized states such as Maharashtra and Gujarat also have a high consumption base comprised of a relatively more affluent population, and are thus able to 'capture' the tax within their state borders." "While India's rapid economic growth since the 1990s has undoubtedly expanded the spending capacity of its 1.4 billion people, acute and rising inequality - among the worst in the world - makes for a notoriously budget-conscious median consumer." ET. 'Mai baap' means 'my dad'. Which permits impunity in clobbering us with cess and surcharges. Perhaps, we would be better off as orphans.