9.88%: Central taxes’ share in India’s gross domestic product (GDP) in 2019-20 plunged to a 10-year low of 9.88%.

Business Standard
11th June

9.88%: Central taxes’ share in India’s gross domestic product (GDP) in 2019-20 plunged to a 10-year low of 9.88%.

  • Central taxes’ share in India’s gross domestic product (GDP) in 2019-20 plunged to a 10-year low of 9.88%.
  • The ratio of central taxes to GDP had stood at 10.97% in 2018-19, and 11.22% the previous year.
  • A further decline has been estimated for the current financial year on account of a slump in economic activity in the wake of the global coronavirus pandemic.
  • According to estimates, for the govt to meet Budget 2020 estimates, tax collections in 2020-21 will need to grow 20 per cent over last year.
  • Tax-to-GDP is seen as a barometer for a country’s economic health. It is both a reflection of the government’s ability to finance its spending and the country’s tax compliance level.

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