Tax-GDP ratio may rise to 11.9% due to GST, closer scrutiny: Government

The government expects the goods and services tax ( GST ) and increased surveillance to boost tax revenues over the next two years, taking India’s tax-to-GDP ratio close to 12% by FY20. The higher revenues are projected to push up capital spend of the government, bring down fiscal deficit to sustainable 3% of GDP and lower the revenue deficit to 1.4% of GDP by FY20. The medium-term expenditure fra…