Budgetary Treatment of Indian Earmarked Taxes: A Tale of Governance Gaps

I analyze that the use of Indian earmarked taxes reveals many inconsistencies, including discrepancies regarding matters as fundamental as whether the proceeds from these taxes are held as part of the general Consolidated Fund of India or treated as extrabudgetary funds. A systematic analysis reveals that the various procedures leads to the proceeds being left unutilized in the Consolidated Fund of India which reveals another reason for their popularity.