A development plan, in order to be successful, should accord the highest priority to the generation of sufficient surplus from the current revenues of the Government, its departmental units and the public enterprises. As development proceeds and the level of income in the economy rises, it should be able to mop up additional resources in the form of public borrowings and small savings. The reforms so far have not succeeded in achieving fiscal balance. Consequently, step must be taken by the Government in the right direction to efficiently mobilize additional resources and avoid falling into a debt trap. The paper details the area of reform the states should focus on to impart efficiency and improve revenue productivity and prioritization and compression of unproductive expenditures. This study suggests how Rajasthan can effectively mobilize additional resources of Non-tax revenue and avoid falling into a debt trap. It has been looking out for new ways of augmenting its revenue income.

KEYWORDS:  Revenue Income, Productivity and Prioritization, Development Plan.