Economics · Taxation and Fiscal Indicators
With reference to tax buoyancy in public finance, consider the following statements: 1. It measures the total responsiveness of tax revenue growth to changes in GDP growth. 2. A tax buoyancy value greater than 1 indicates that tax revenue is growing at a faster rate than GDP. 3. It mathematically excludes the impact of discretionary tax policy changes (unlike tax elasticity). Which of the statements given above is/are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11, 2 and 3
- 21 only
- 32 and 3 only
- 41 and 2 only✓
Correct answer
1 and 2 only
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