Consider the following statements about Tax buoyancy 1 It refers to the changes in tax revenue vis a...........

Indian Economy (Easy) Budgeting and Fiscal policy

Download Solution PDF

Consider the following statements about Tax buoyancy:

1. It refers to the changes in tax revenue vis-a-vis GDP growth.

2. Tax buoyancy in direct taxes has increased consistently since year 2015-16.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 and 2

छोटे Courses बड़े Results

Master Budgeting and Fiscal policy

Prepare through Micro-courses

Try Now

Explanation:

Tax buoyancy is an indicator to measure efficiency and responsiveness of revenue mobilization in response to growth in the Gross domestic product or National income. A tax is said to be buoyant if the taxrevenues increase more than proportionately in response to a rise in national income or output.