A decrease in tax to GDP ratio of a country indicates which of the following?
(1) Slowing economic growth rate
(2) Less equitable distribution of national income
Select the correct answer using the code given below.
A decrease in tax to GDP ratio of a country indicates which of the following?
(1) Slowing economic growth rate
(2) Less equitable distribution of national income
Select the correct answer using the code given below.
Answer:
(a)
Core Books/NCERT
Slowing economic growth rates may result in lower tax collection.Tikdam: Controversial question it depends on tax buoyancy but geneally as economy slows, tax to GDP ratio also declines Statment 2 can also be proved to be both true and false in different scenraios