Question 1 · 10 marks · 152 words written
Opening
The recent budget accounted towards rationalizing tax regime on accounts for increasing tax to GDP ratio; and improve saving driven investment growth.
Body · points
The recent budget accounted towards rationalizing tax regime on accounts for increasing tax to GDP ratio; and improve saving driven investment growth.
Important changes
- The dilution of long-term capital gains tax in order to envisage investment across sectors like real estate, which was under-developed in K-shaped recovery. II) For securities transaction tax rates are rationalized for developing competitive capital market. III) The transparency in capital gains taxation, will ensure effective tax collection and right valuation effect.
Impact of it
- It will reboost India's saving rate as Economic Survey highlight drop from 34% to 30% in 2022-23.
II) Promote virtuous cycle
III) Ensure self-sufficiency culture. Thus preventing poor bank deposit ratio problem and impact on multiplier effect.
IV) Revamp role of household consumption in GDP; by increased earning based crowd-in effect.
V) The improving credit facility thus boosting our Capital Investment.
Hence such efforts holds key towards $7 trillion economy goal.
Close · a way forward
II) Promote virtuous cycle III) Ensure self-sufficiency culture. Thus preventing poor bank deposit ratio problem and impact on multiplier effect.
IV) Revamp role of household consumption in GDP; by increased earning based crowd-in effect.
V) The improving credit facility thus boosting our Capital Investment.
Hence such efforts holds key towards $7 trillion economy goal.