West Bengal Deserves Higher Share of Tax Proceeds for Its Efficient Performance

Abstract

The socio-economic contribution of the Indian state of West Bengal, which has been subjected to repeated partitions and transfer of population during last one hundred and fifty odd years to serve the interest of the colonial and national rulers, is immense. It cannot be judged just by its GSDP share. More inclusive parameters are needed to assess the contribution of densely populated smaller states like West Bengal. This paper attempts to address this issue by: (i) developing a Composite Productivity Index (SCPI) for different states/provinces for proper assessment of their economic performance, and (ii) suggesting a new formula to determine the states’ share of the ‘divisible tax pool’.