India’s tax-to-GDP ratio is far lower than the 21 per cent average of its emerging market peers; its public spending-to-GDP ratio is also the lowest among BRICS nations. _________________________________. About 85 per cent of the economy is outside the tax net. Even among those who pay taxes, the number of individuals who earn more than Rs.1 crore a year or pay tax in the 30 per cent tax bracket is unrealistically low.

The government had promised to adopt non-intrusive methods and employ information technology to widen the tax base.

The country cannot scale up necessary infrastructure and social spending without widening its tax base.

As a target, rough or otherwise, it is an ambitious goal for a country where the direct tax base has grown at a snail’s pace over six decades.

It is not clear why there is such panic about the number, especially if it was a mere statement of intent.

According to recent economic survey, it said India needs to increase its tax-GDP ratio, and spend more on health and education.

India’s tax-to-GDP ratio is far lower than the 21 per cent average o

1.	India’s tax-to-GDP ratio is far lower than the 21 per cent average of its emerging market peers; its public spending-to-GDP ratio is also the lowest among BRICS nations. _________________________________. About 85 per cent of the economy is outside the tax net. Even among those who pay taxes, the number of individuals who earn more than Rs.1 crore a year or pay tax in the 30 per cent tax bracket is unrealistically low.
A.	The country cannot scale up necessary infrastructure and social spending without widening its tax base.
B.	The government had promised to adopt non-intrusive methods and employ information technology to widen the tax base.
C.	As a target, rough or otherwise, it is an ambitious goal for a country where the direct tax base has grown at a snail’s pace over six decades.
D.	It is not clear why there is such panic about the number, especially if it was a mere statement of intent.
E.	According to recent economic survey, it said India needs to increase its tax-GDP ratio, and spend more on health and education.
Answer» B. The government had promised to adopt non-intrusive methods and employ information technology to widen the tax base.

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