India Since Demonetisation

In India, tax to GDP ratio, at around 18 percent, is amongst the lowest in the world, probably because India, as mentioned in the Union Budget of 2017-18, is a tax non-compliant country. Tax evasion and corruption are deterrent to economic growth. Given that India is an emerging country, there are extensive infrastructure requirements which need high development expenditure. There is an immediate and constant need for resources which are of non-debt in nature to ensure respite from the existing level of high interest burden. Demonetisation is a step in ensuring an honest tax regime, better tax collections, and lower dependence on borrowings.