The Quest for the Holy Grail: Efficient and Equitable Fiscal Consolidation in India
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Achieving fiscal consolidation without undermining growth and poverty-reduction efforts is a key policy challenge in many countries. Using India as an illustration, this paper shows how a mix of well-designed taxation and spending policies can help address these challenges. On the tax side, the analysis focuses on increasing consumption taxes on goods with negative consumption externalities. On the spending side, some of the additional revenues from the tax reform are allocated to scaling up key social transfer programs. Substantial additional gains are possible if the increased social transfers can be accompanied by improved targeting.
Series:
Working Paper No. 2015/152
Subject:
Consumption Estate tax Income Income distribution Labor National accounts Taxes
English
Publication Date:
July 13, 2015
ISBN/ISSN:
9781513592657/1018-5941
Stock No:
WPIEA2015152
Pages:
24
Please address any questions about this title to publications@imf.org