Glossary Terms

04

Dec'17

Countercyclical fiscal policy

A counter-cyclical fiscal policy refers to strategy by the government to counter boom or recession through fiscal measures. It works …

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04

Dec'17

Fiscal devolution

Fiscal devolution refers to the transfer of central government’s tax revenues to the states. Besides the taxes, the new cooperative …

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04

Dec'17

Horizontal equity

Horizontal equity in taxation implies that people with the same ability to pay (same income) should be taxed at the …

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04

Dec'17

Vertical Equity

In taxation, vertical equity means that the burden of the tax is equally borne by different categories of people. Here, …

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04

Dec'17

Finance Commission

Finance Commission is a constitutional body formed in every five years to make recommendations about the transfer of central government’s …

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04

Dec'17

Divisible pool

Divisible pool refers to the taxes of the central government that it should share with the sub national or state …

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04

Dec'17

Debt GDP Ratio

Debt to GDP ratio indicates debt of the government as a percentage of GDP. It shows the level of indebtedness …

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04

Dec'17

Tax GDP Ratio

Indicate the tax revenues of the government as a percentage of GDP. At present, the tax GDP ratio of the …

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04

Dec'17

Tax planning

Tax planning is framing of a financial plan by the tax payer in advance to minimize tax payment. Tax planning …

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04

Dec'17

Tax Mitigation

Tax mitigation is a situation where the taxpayer uses a fiscal incentive (tax concession) available to him in the tax …

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