Budget Special

The tax-to-GDP ratio: How well is India collecting its dues?

Exploring its meaning, relevance, and impact on India's fiscal health

What is the tax-to-GDP ratio? | Union Budget 2025

Ever wondered how well India is turning its massive economy into actual tax revenue? That's where the tax-to-GDP ratio steps in — a simple but powerful metric that shows how much of the nation's income comes from taxes. Think of it as a fiscal report card for the government. The higher the score, the better it's doing at mobilising resources for development. So, how's India faring? Let's break it down.

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