We have already understood that Taxation in India is the main way for the government to gain revenue. In this chapter, we will understand India’s taxation system and ways to make it efficient, in a way that promotes growth. India’s tax-to-GDP ratio The Tax-to-GDP ratio measures a country’s total tax revenue as a percentage of…
Goods & Services Tax (GST) is a Value added tax, that includes both goods and services. In India, it is imposed at four uniform rates. In GST all the old taxes that were levied on most of the products have been subsumed since 2017, simplifying the tax structure.; GST Taxation is performed only at only…
“Lord, give me chastity and continence but not yet ” – St. Augustine. Chastity means the power of self-control. The Economic Survey of 2017 used this phrase to summarise the feelings of every government. They want to control their expenditures by creating rules and legislation, such as the FRBM Act. Despite this, governments are reluctant…
Government deficit refers to the shortfall between a government’s total expenditures and total revenues in a given fiscal year. It indicates higher spending than earnings, requiring borrowing or monetary adjustments. Persistent deficits can lead to inflation, increased debt, and economic instability if not managed effectively. Types of Deficits We can understand the deficit in various…
The government is the highest institution in society, and therefore, the role of government in an economy is immense. Functions of government In any economy, the government performs various functions: Provide public goods: Those goods which the market cannot provide, the government steps in to provide. For example, security, rail network, public parks etc. Distribution…