Tax Buoyancy
Recently, the Finance Minister presented fiscal consolidation projections that surpass expectations for the current financial year and Budget Estimates (BE) for the next year, despite the conservative tax buoyancy in the estimates.
What is Tax Buoyancy?
- It refers to the responsiveness of tax revenue growth to changes in GDP.
- When a tax is buoyant, its revenue increases without increasing the tax rate.
- It depends upon:
- the size of the tax base;
- the friendliness of the tax administration;
- the rationality and simplicity of tax rates;
- Tax buoyancy explains the relationship between the changes in the government’s tax revenue growth and the changes in Gross domestic product (GDP).
- There ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Already a Member? Login here
Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Economy Watch
- 1 India Lists First Mortgage-Backed Pass Through Certificates on NSE
- 2 Bond Forward in G-Secs
- 3 4th Phase of Consolidation of Regional Rural Banks
- 4 SIDBI’s Report on MSME Sector
- 5 Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme
- 6 RBI’s Surplus Transfer: A Catalyst for India’s Economic Growth
- 7 RBI’s Digital Lending Directions 2025
- 8 RBI Recognises FIMMDA as SRO
- 9 MSP for Jute
- 10 Expansion of the Credit Guarantee Scheme for Startups