Revenue generation
Resource allocation for development
Reducing fiscal deficit
All of the above
Answer is Right!
Answer is Wrong!
The correct answer is: d) All of the above
Narrow tax base and limited tax compliance are challenges faced by the Assam government in all of the following areas:
- Revenue generation: A narrow tax base means that the government has a limited number of sources of revenue, which can make it difficult to generate enough money to cover its expenses. Limited tax compliance means that many people and businesses are not paying their fair share of taxes, which further reduces the government’s revenue.
- Resource allocation for development: A lack of revenue makes it difficult for the government to invest in development projects, such as infrastructure, education, and healthcare. This can have a negative impact on the state’s economy and quality of life.
- Reducing fiscal deficit: A fiscal deficit is the difference between the government’s revenue and its expenses. A large fiscal deficit can lead to debt problems, which can make it difficult for the government to borrow money in the future.
The Assam government has taken some steps to address these challenges, such as increasing taxes and improving tax compliance. However, more needs to be done to ensure that the government has the resources it needs to provide essential services and invest in development.