Quote:
Originally Posted by rabia butt
what do we mean by tax-GDP ratio?
what is fiscal deficit?
whats circular debt?
what are the sources of direct and indirect sources?
|
tax to gdp ratio is the ratio of tax collection against the national GDP.
fiscal deficit occurs when the govts total expenditure exceeds total revenue(excluding borrowing).
circular debt
let us understand it like this.i owe rabia butt,rabia butt owes rose_pak, and rose pak owes mjkhan...now jab tak ma ap ko pesay nahee don ga ap rose pak ko payment nahee kar sakain gee aur jab tak ap rose pak ko payment nahee kar sakain gee rose pak mujhey payment nahee kar sakain gey..and this is how a circular debt circle is formed..
sources of direct indirect taxes
direct taxes may be income tax,corporate tax etc
indirect tax may be sales tax,value added tax etc(indirect tax is not directly submitted to the govt. by the payee of he tax)