In a significant fiscal development for the Indian economy, state governments across the country reported a substantial surge in sales tax revenue throughout April, with some regions witnessing growth as high as 58% compared to previous cycles. Data released by the Comptroller and Auditor General (CAG) of India confirms that this uptick occurred even as states largely maintained their existing Value Added Tax (VAT) rates on petroleum products, defying expectations of a slowdown in tax buoyancy.
The Mechanics of Fiscal Growth
The term
