Finance Minister Nirmala Sitharaman stated today that India's tax system has evolved towards simplification, technology, trust, and transparency, which are strengthening fiscal capacity. Addressing the Golden Jubilee celebrations of the National Institute of Public Finance and Policy in New Delhi, the Minister noted that the country's revenue-side architecture has undergone a paradigm shift over the last decade, where the system once relied on high rates, narrow bases, discretionary assessments, and adversarial enforcement. She said that the general government Debt-to-GDP ratio, including states' debt, is 81%, which is the lowest among major economies after Germany. Ms. Sitharaman informed that India is the only major economy where the International Monetary Fund projects this ratio to fall significantly to 75.8% by 2030.
The Minister said that the government has credibly changed the course of fiscal policy from consumption-led deficits to productive investment-led consolidation. She added that a robust, fair, and efficient revenue system is essential for governance.