Question

GST brings 60 lakh new taxpayers.” What will be its likely

effect on revenue deficit in government budget?​

Answer 1

Answer:

GST brings 11 lakh and 20 thousands to give ne w taxpayers

Answer 2

Answer:

The revenue deficit would decrease

Explanation:

• A revenue deficit occurs when the government's total revenue expenditure exceeds its total revenue receipts, implying that net income is less than net expenditure.
• This deficit occurs when the actual amount of revenue or expenditure does not match the budgeted amount of revenue or expenditure.
• Policymakers can increase revenues directly by raising tax rates, reducing tax breaks, broadening the tax base, improving enforcement, and imposing new taxes. They can indirectly raise revenues by enacting policies that boost economic activity, income, and wealth.
• One such method was the Goods and services tax. When there is an addition of 60 lakh more tax payers, the govt income will increase and the revenue deficit would decrease.

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