India needs 1.2-1.5 tax buoyancy to achieve 6.5-7% growth: EY

India has to maintain a tax buoyancy in the range of 1.2-1.5 to achieve a growth of 6.5-7%, an EY report said on Wednesday.

- PTI

India has to maintain a tax buoyancy in the range of 1.2-1.5 to achieve a growth of 6.5-7%, an EY report said on Wednesday. The report also said that the government may need to strengthen revenue mobilization, particularly by increasing the tax-to-GDP ratio, from the estimated 12% in FY26 (budget estimate) to 14% by FY31.

India's fiscal strategy must focus on enhancing tax buoyancy, prudent expenditure management, and continued structural reforms to ensure sustainable growth, EY said.

EY India chief policy advisor D.K. Srivastava said the FY26 budget strategically balances fiscal consolidation with growth imperatives.