2025, Vol. 7, Issue 2, Part A

author(s)
Rakesh Bhartiya, Kamlesh Devi and Sanjay Kumar Bahl

abstract
This paper attempts to analyse the impact of optimum human resource sanctioned for the State Taxes & Excise department and its consequential impact on the cost of collection as well as on the Tax Revenue Enhancement for the state of Himachal Pradesh. This paper uses secondary data of State Taxes and Excise department published in the Annual Administrative Reports for eight year 2017-18 to 2024-25. The paper attempts to use average per-capita expense on the collection of State Tax Revenues. It further uses cost benefit analyses of the entire human resource sanctioned and placed and its expected consequential impacts on revenues in the department of State Taxes & Excise. Hence, the per capita expense may increase as per allocated work force, however the consequential impact in the collection of revenues is projected and estimated to be proportionately multiplied manifold. It may create additional immediate capital expense of Rs. 100 Crores or more to strengthen the collection department, but the department in return, may fill the treasury of the state government additionally by the projected amount of Rs. 7,817.59 Crores. This enhanced revenue collection, thus, may bring substantial finances in the hands of the Government to help meet fiscal deficits, reduce debt liability and to further meet the socio-economic welfare needs of the people of Himachal Pradesh.