Interim Budget 2024: India's tax-to-GDP ratio fluctuated from 11% in FY19 to 9.9% in FY20 due to COVID-19, slightly rising to 10.2% in FY21. A low ratio poses challenges for infrastructure spending. Tax collections have consistently outpaced GDP growth for over two years, notably in direct taxes like income tax. The Finance Ministry anticipates this trend to persist, potentially influencing fiscal policies and resource allocation.
