India’s tax-to-GDP ratio is one of the lowest when compared with OECD countries. What are the implications of it? Also, examine the factors responsible for such a low ratio. And suggest the measures to improve it. 10 marks

Mentor’s comment- https://economictimes.indiatimes.com/budget-faqs/what-is-tax-to-gdp-ratio-where-does-india-fare-on-this-indicator/articleshow/73222499.cms https://www.financialexpress.com/opinion/why-reforming-archaic-tax-laws-is-crucial/2061143/ In the intro, explain what is tax-to-GDP ration and cite the figure of tax-to-GDP collection in India. In the body, as implications of such low collection mention the constrained government expenditure and overall related implications, in the factors mention the loopholes in policy, dishonest citizens, inefficient tax regulatory authorities, lack of … Continue reading India’s tax-to-GDP ratio is one of the lowest when compared with OECD countries. What are the implications of it? Also, examine the factors responsible for such a low ratio. And suggest the measures to improve it. 10 marks