Accounting And Consulting Company EY said on Wednesday that India needs an increase in tax revenue in proportion to changes in GDP to achieve 6.5 to 7.0 percent economic growth rate. The company said that Tax Buyaancy is needed from 1.2 to 1.5 to 1.5. The report also states that the government needs to strengthen the revenue collection, especially to increase the tax to GDP ratio from the estimated 12 percent to the financial year 2025-26 to 14 percent by financial year 2030-31 will be.
You will have to pay attention to increasing tax revenue
The EY said that India’s fiscal strategy should focus on constant structural reforms to increase tax revenue in proportion to the change in GDP, rational expenditure management and continuous increase. EY India Chief Policy Advisor DK Srivastava said that the budget of FY 2025-26 strategically balances fiscal strength with the imperatives of development. Srivastava said, “However, India will have to ensure that tax growth remains within a radius of 1.2 to 1.5 percent to achieve the growth rate of 6.5 to 7.0 percent and realize the approach of its developed India. This will help in accelerating the expansion of infrastructure, increasing the expenses of the social sector and maintaining the necessary fiscal scope to maintain fiscal discipline.
Increase in tax revenue decreased
The report of EY India Economy Watch states that in the last three years, the rise in revenue has gradually decreased. In FY 2023-24 it came from 1.4 to 1.15 as per the revised estimate of FY 2024-25. At the same time, it is estimated to be 1.07 in the budget of FY 2025-26. The EY report said, “Maintaining tax bounce within the radius of 1.2 to 1.5 percent may help the Government of India get 6.5 to 7. percent GDP growth rate.” The country’s economic growth rate in the next financial year It is estimated to be 6.3 to 6.8 percent. The GDP growth rate is expected to be 6.4 percent in the current financial year.
(PTI/Language)
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