Dossier
tax-to-GDP ratio
Coverage of tax-to-GDP ratio in the Nexus archive.
- A budget to forget
The state budget is criticized for lacking strategic vision, favoring the wealthy, and deferring necessary reforms. It reduces provincial funding, increases indirect taxes burdening the poor, and maintains a low tax-to-GDP ratio, failing fiscal equity and expansion goals.
- Budget presser
Pakistan's Finance Minister Muhammad Aurangzeb presented a budget aiming to balance relief, growth, and fiscal consolidation, but it faces challenges in revenue collection and tax reform. The government claims a shift from stabilization to growth, yet reliance on untested mechanisms for tax collection and unresolved structural issues like low tax-to-GDP ratios remain critical risks.