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Tax to GDP Ratio

Indian express says that low tax to GDP indicates
Slowing Economic growth rate
Less Equitable Distribution of National Income.

Can we accept it authentic?


  • edited August 2015
    This is the sort of question that will invite perennial debates which IMO is a waste of time. Account for that, establish a range for your marks, and hope that it falls within the cutoff range and start preparing for mains.

    As for this question, I marked none but I'm not sure which answer should be correct so I'm treating it wrong. Same with the "fundamental principle of PRIs" question where I marked 1&3 only. Different people have been giving their own interpretations and its all up to UPSC.

    In Scandinavian countries with perfect compliance it means one thing and in India it means another where there is rampant evasion and avoidance. OTOH if you abstract the question to the core - if A/B is decreasing then does that imply that the growth of B has been slower? It all depends on the interpretation imo.
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