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flag India targets a 14% tax-to-GDP ratio by 2031 to spur economic growth and fiscal stability.

flag A recent EY report states that India needs a tax buoyancy of 1.2-1.5 to achieve a 6.5-7% growth rate. flag The government must boost the tax-to-GDP ratio from 12% in FY26 to 14% by FY31. flag This fiscal strategy aims to enhance tax buoyancy, manage spending wisely, and drive structural reforms for sustainable growth, supporting infrastructure and social spending while maintaining fiscal discipline.

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