- India’s growth has been “impressive” in recent years and this gives the room for tax broadening efforts by the government, a top International Monetary Fund (IMF) official has said.
- Elimination of fuel subsidies and the targeting of social benefits has delivered in terms of allowing the union budget target to be achieved at 3.5 per cent of GDP.
- IMF has been collaborating with the Indian authorities in terms of looking at fiscal structural measures, including expenditure rationalization while protecting infrastructure investment, tax broadening efforts.
- In this context, the roll out of the Goods and Services tax (GST) is an extremely important step that would create a true unified national market in India.
- Inequality has increased in both India and China.Moreover, globalization and technological change have been major drivers of economic growth and cross country convergence.
- More than one billion people have been lifted out of extreme poverty since the early 1980s, and most of them come from China and India
- The clear perception around the world of widespread increases in income inequality illustrates the dominance of national politics shaping these perceptions.
- Fiscal policies, government expenditures and revenues are powerful means to ensure the sharing of the growth dividend
Note4Students: Important for Mains. Collaboration of India with IMF for Fiscal structural measures can be used to show commitment to fiscal prudence by India. Points 5 to 9 can be used in Essay as well as other GS Papers.