Budget basics: How govt can break out of its straitjacket and raise revenue

There are two ways: deliver a rapidly growing economic pie or re-assess tax policy - reform of GST, closing corporate tax loopholes, suggests T N Ninan

Come January and it’s time to focus on the Union Budget. As in everything else, it is important to shut out the noise on inconsequential details and concentrate on what really matters. Start with government debt, which has climbed steeply on account of large deficits run up as a response to the pandemic. The spending in the midst of revenue loss was unavoidable, and was relatively moderate; still, the after-effects stay with us. Government debt (Centre and the states) is approaching 90 per cent of GDP. That compares with under 70 per cent before the pandemic, and the desirable level