Growth of Tax Revenue and Per Capita Tax Burden in The Indian Economy

Tax is one of the major instruments of Fiscal Policy. Taxes can be used as an effective tool to achieve higher rate of economic growth, to control inflation, to reduce income inequalities. Tax revenue increases in different proportions in different years depending on the economic conditions. Governments also aim at increasing tax revenue to meet the increasing public expenditure. In fact, governments introduce various types of taxes. Government generally tries to identify new avenues for implementing new taxes. As long as public expenditure increases, taxes are also likely to increase. However, majority of the people view that taxes are burden to them and it reduces their real income and savings. This research work analyses the growth of tax revenue of the Central and State governments and the increase in per capita tax burden of the people of the Indian Economy over the period of 30 years.