The correct answer is (a) 18.87 percent.
The tax-GDP ratio is a measure of the tax revenue collected by a government as a percentage of its gross domestic product (GDP). It is a key indicator of the government’s ability to finance its expenditures and to promote economic growth.
In India, the tax-GDP ratio has been increasing in recent years. In 2008-09, the tax-GDP ratio was estimated at 18.87 percent. This was an increase from 17.84 percent in 2007-08 and 16.39 percent in 2006-07.
The increase in the tax-GDP ratio is due to a number of factors, including:
- The implementation of the Goods and Services Tax (GST) in 2017, which has led to a more efficient and effective tax collection system.
- The government’s efforts to widen the tax base and improve tax compliance.
- The economic growth of India, which has led to an increase in the tax revenue collected by the government.
The increase in the tax-GDP ratio is a positive development for India. It will help the government to finance its expenditures and to promote economic growth. However, it is important to note that the tax-GDP ratio is still relatively low in India compared to other countries. The government will need to continue to make efforts to widen the tax base and improve tax compliance in order to increase the tax-GDP ratio further.
The other options are incorrect because they do not represent the actual tax-GDP ratio in India in 2008-09.