Taxation and economic growth- A critical assesment of literatures specially related to India

The vital role of fiscal policies are cannot be denied whether it is developed economy, developing economy or transition economy. Tax system is not use by government authority just to collect revenue but also used to promote other objective like level of employments, inflation control through price stability, rapid growth of gross domestic product (GDP), favorable Balance of payments, equitable income distributions, promotion of infant industries etc. The relation of taxation and the growth is a long way discussion in economics. Tax is not directly affecting the growth of a country. But tax has a power to influence the economic choices of individuals that can affect growth. This paper has the main objective to critically analyses existing literatures on the theme ‘Taxation and Economic Growth’- especially for India. Several areas have been found where researcher and policy makers can initiate in their studies.