A decelerating economy has only exacerbated the govt's tax worries

A tax revenue growth target of 18 per cent is a tough task even when the economy does well on the growth front

A K Bhattacharya

The Indian economy’s growth prospects look quite grim. Its gross domestic product (GDP) grew by just 5 per cent in April-June 2019 in real terms, a six-year low. This was even lower than the 5.8 per cent print recorded in the previous quarter.  A decelerating economy has obviously posed many challenges for the government. One of these challenges pertains to the government’s tax revenue. Even while the government formulates new packages to help the economy recover from such low levels of growth, it needs to worry about its own tax revenue as well.  How ...