Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Direct Tax »
Open DEMAT Account in 24 hrs
 Govt kicks off direct tax code revision
 ITR 2024 25 Check tax department s update on TDS and refunds
 Income Tax: Why did some taxpayers receive notice for discrepancy in house rent receipt? IT Dept explains
 Income tax exemption: 4 financial instruments you can still invest into before March 31
 CBDT drops small tax demands but not TCS, TDS claims
 ITR Refund: Awaiting money from Income Tax? Here's why you have not yet received your amount
 Income Tax Notice: What to do if you receive a Section 143 (1) notice from taxman?
 Average tax return processing time cut to 10 days: CBDT
 7 types of Income Tax Notice ITR filers may receive for AY 2023-24
 ITR filing: Do these advance preparations before filing your income tax return
 What are the strategies to maximize tax refunds after submitting an income tax return (ITR)?

Govt finances show improvement in tax effort, quality of expenditure
December, 01st 2015

The government has not only reduced the fiscal deficit, as the numbers for the April-October period show, it has also vastly improved the quality of the deficit. This is shown by the 31% rise in capital expenditure compared with the same period last year, while there has been a mere 3% rise in revenue expenditure. That is reflected in the revenue deficit, which has come down by a high 22.8% during April-October compared with the same period last year, while the shrinking of the fiscal deficit has been a lower 13.6%.

The expansion in capital expenditure has been possible because of the improvement in both tax and non-tax revenues. The improvement in tax revenues is also a step in the right direction, given that India’s tax-to-GDP (gross domestic product) ratio is low. The upshot: there has been a significant improvement not just in the quality of expenditure but also in the tax effort.

While the overall expenditure has gone up by 6.2%, the fact remains that the overall fiscal deficit has come down, which means the government is taking in more than it spends and the overall impact is expansionary.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting