Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
5. Expanding India’s tax base is of significant importance for the country’s economic growth and fiscal stability. Discuss. (250 words)
Difficulty level: Easy
Reference: Indian Express
Why the question:
The article discusses the growth of the tax base in India and emphasizes the importance of the government utilizing this opportunity effectively for the country’s development.
Key Demand of the question:
To write about the steps that are needed to harness India’s food processing potential.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Begin by giving a statistic about current status of India’s tax base.
Body:
First, in detail, write about the advantages of a broader tax base – generates more revenue for essential services. It enhances infrastructure development, social services, and investor confidence, promoting economic growth and fairness in the tax system.
Next, write about the its role in fiscal stability – promoting fairness and compliance in the tax system, Reducing Budget Deficits etc.
Next, write about that are needed to broaden the tax base.
Conclusion:
Conclude by writing a way forward.
