Which of the following statements about India rsquo s fiscal sector is are correct The total number ...........

Economic Affairs Tax System

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Which of the following statements about India’s fiscal sector is/are correct?

The total number of tax returns filed by the country showed a steady increase over the last four years.
The tax:GDP ratio rose to 5.98% in the 2017-18, the highest in last 10 years.
However, the tax growth rate being less than the GDP growth rate, the tax buoyancy factor rose to 1.81.
Total direct tax collection in the country is estimated to be over Rs. 10 lakh crore in 2017-18, an increase of about 18% from the previous year.

Choose the correct alternative

1, 2, 3 and 4

1, 2 and 4

1 and 2

2 and 4

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Explanation:

The thrid statement is incorrect as the country witnessed a tax buoyancy of 1.81 i.e. the tax growth rate was more than the GDP growth rate.

Fiscal policy refers to the use of government spending and tax policies to influence economic conditions, including demand for goods and services, employment, inflation and economic growth.