THE EVOLUTION OF INDIA’S TAX REVENUE SYSTEM: TRENDS, EFFICIENCY, AND ECONOMIC IMPACT (2000-2024)

This paper analyzes the development of India's tax revenue system, with a focus on the roles of direct and indirect taxes, the efficiency of tax administration, and the interplay between economic growth and tax performance. The study covers the period from 2000-01 to 2023-24, utilizing provisional data for the most recent year. Key trends highlighted include a steady rise in overall tax collections, an increasing share of direct taxes, and a declining reliance on indirect taxes. The paper further examines shifts in tax policy, emphasizing progressive taxation, particularly through personal income tax. Additionally, it explores important metrics such as the Direct Tax, GDP Ratio, tax buoyancy, and the cost of tax collection, offering insights into the improvements in the efficiency of India's tax system. The findings indicate a transition towards a more progressive and effective tax structure, which has played a significant role in supporting India's economic growth and fiscal stability