Fiscal Consolidation

Fiscal consolidation is a desirable goal in itself and would also facilitate the attainment of the other four objectives of the 2003-04 Budget. Such consolidation would require, primarily, a substantial increase in tax/GDP ratio. However, the current budget has not made any significant effort in this direction. On the other hand, the effects of changes in existing tax rates and exemptions and changes in the debt policy make the attainment of the revenue targets even more difficult.