This method of computing compensation has only four states that have growth rate below 14% - Andhra Pradesh (13.42%), Manipur (12.40%), Punjab (11.86%) and Sikkim (12.49%). The average of outlier (best and worst) years of the last five years also has 15 of all states earning more than 14% with highest revenue growth rate of 28.86% for Arunachal Pradesh. So, it may get a big share of compensation from the Centre if its growth is below 14%. Finally, if the last fiscal year – 2015-16 – had been taken as reference for yearly revenue growth rate, then 14 states would have fallen in the bracket of revenue growth rate of higher than 14% with West Bengal registering the highest growth of 43.3% and Sikkim a negative growth of -15.14% last fiscal. Here, it may be noted that the state revenue number that DNA Money has used for arriving at annual growth rate may include taxes from alcoholic beverages and petrol and petroleum goods.

Source: dna October 24, 2016 02:48 UTC