Abstract
Tax-GDP ratio is a crucial indicator which provides a snapshot into the resource generating capacities and potential of an economy. Since the revenue administration regimes vary globally in many ways, it is also interesting to understand the intricacies of this concept before making comparisons in a very superficial manner. The tax-GDP ratio in India is presently in the range of 11-11.5 percent, while some OECD countries like Sweden, Finland and Norway have a figure of over 40 percent in recent years. We argue in this paper that in India administrative and policy reforms by learning from best practices will help in enhancing Tax-GDP ratio. State and local governments can have a critical role with more proactive participation and will help in better resource mobilization.
Keywords: Tax, TAX-GDP Ratio, Domestic Resource Mobilization, Tax Administration, Tax Policies, Global Tax- GDP Ratios, Implications Tax- GDP Ratios, Indian Tax Reforms, Global Taxation Patterns, Components of Tax Revenues, Trends in Tax Revenues, Tax and Social Security Contributions
