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India's Direct Tax Buoyancy Hits 1.39 in FY 2024-25, Staying Above One for Third Year
✍️ Hindustan Times
🗓 06 Sep 2026, 08:35 AM
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The Finance Ministry reported that direct tax buoyancy reached 1.39 in FY 2024-25, indicating tax collections grew faster than the economy for the third consecutive year.
India's finance ministry released data showing that the direct tax buoyancy ratio stood at 1.39 for the fiscal year 2024-25. The metric, which compares the growth rate of tax collections to the growth of nominal GDP, remained above the critical threshold of one for the third straight year.
The 1.39 figure signals that direct tax receipts expanded 39% faster than the overall economy, underscoring the effectiveness of recent tax reforms and improved compliance measures.
Analysts view the sustained buoyancy as a positive sign for fiscal health, suggesting that the government's revenue base is strengthening even as the economy grows at a moderate pace. The ministry expects the trend to continue, provided that policy support and enforcement remain robust.
The 1.39 figure signals that direct tax receipts expanded 39% faster than the overall economy, underscoring the effectiveness of recent tax reforms and improved compliance measures.
Analysts view the sustained buoyancy as a positive sign for fiscal health, suggesting that the government's revenue base is strengthening even as the economy grows at a moderate pace. The ministry expects the trend to continue, provided that policy support and enforcement remain robust.