Consider the following statements:
1. Tax revenue as a per cent of GDP of India has steadily increased in the

Question

Consider the following statements:
1. Tax revenue as a per cent of GDP of India has steadily increased in the last decade.
2. The fiscal deficit as a per cent of GDP of India has steadily increased in the last decade.
Which of the statements given above is/are correct?

Accepted Answer

Over the last decade, India's tax revenue as a percentage of GDP has shown an increasing trend, driven by improved tax administration and broadening of the tax base. However, the fiscal deficit as a percentage of GDP has not shown a steady increase; it has fluctuated due to various economic conditions, government spending, and revenue generation efforts, with periods of both increase and decrease.