India`s impressive growth : IMF |
India`s growth has been “impressive” in the recent years which makes room for tax broadening efforts by the government, according to a top IMF official. India has recorded quite an impressive growth performance in recent years. Our view is that the elimination of fuel subsidies and the targeting of social benefits has delivered in terms of allowing the union budget target to be achieved at 3.5 per cent of GDP, according to Vitor Gasper, Director of the IMF Fiscal Affairs Department. He added we have been collaborating with the Indian authorities in terms of looking at fiscal structural measures, including expenditure rationalisation while protecting infrastructure investment, tax broadening efforts. In this context, the rollout of Goods and Services tax (GST) is an extremely important step that will create a true unified national market in India. He also said inequality has increased in both India and China.As was the case for India, in China inequality has increased. From that viewpoint, there is need for social spending and taxation reform in order to address that issue in China.
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