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The Economic Times

Opinion / The Economic Times

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Indias tax buoyancy slump is a warning for fiscal policy

India's tax revenue growth has slowed significantly in FY26. This creates a challenge for the government balancing economic support and fiscal responsibility. Lower inflation and tax relief contributed to this shortfall. A weakening financial cycle also appears to be impacting tax collections. This trend may continue into FY27, requiring conservative tax forecasts and a strong signal of fiscal discipline.

28 Jan 2026 11:10 pm