India records impressive growth in recent years: IMF
WASHINGTON, APR 20:
India’s growth has been impressive in the recent years, which make room for tax broadening efforts by the government. The elimination of fuel subsidies and the targeting of social benefits have delivered in terms of allowing the union budget, to be achieved at 3.5 per cent of GDP,” Vitor Gaspar, Director of the IMF Fiscal Affairs Department told reporters. We have been collaborating with the Indian authorities in looking at fiscal structural measures, expenditure rationalization while protecting infrastructure investment, and tax broadening efforts. The rollout of Goods and Services tax is an extremely important step that will create a true unified national market in India. We see room for tax broadening efforts and for more progressive income taxes in line with trends in income inequality. The increase in social spending and change in taxation supports the transfer of expenditure from investment to consumption. More than one billion people have been lifted out of extreme poverty since the early 1980s, and most of them come from China and India. Fiscal policies, government expenditures and revenues are powerful means to ensure the sharing of the growth dividend.