Thursday, 28 February 2013

Current Affairs-Indian Government's Union Budget 2013-14: Need for Increasing The Tax GDP Ratio


Need for Increasing The Tax GDP Ratio

Presenting the Union Budget in the Parliament today, the Finance Minister Shri P.Chidambaram underlined the need for increasing the Tax GDP ratio. The Finance Minister said that in FY 2011-12, the Tax GDP ratio was 5.5 percent for direct taxes and 4.4 percent for indirect taxes. These ratios are one of the lowest for any large developing country and will not garner adequate resources for inclusive and sustainable development. 

Shri P.Chidambaram further added that in 2007-08, the Tax GDP ratio touched a peak of 11.9 percent and in the short term, we must reclaim that peak. 

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