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

India's tax-to-GDP ratio has seen fluctuations but not a steady increase over the last decade, influenced by policy changes and economic conditions. Similarly, the fiscal deficit as a percentage of GDP has also varied significantly, rising during economic downturns and falling during periods of consolidation, rather than showing a consistent upward trend.