Source: singaporebudget.gov & India
Here is a small chart showing the receipts breakdown. I've used 2012 numbers (may be will update with 2013 after Indian budget) but the % terms gives us why Singapore is doing a great job.
It is about the coverage of the tax umbrella and not to depend on borrowings.
Singapore is considered as a "low tax nation" and the taxation is pretty low compared to India. Be it the individual income tax (max 20% vs 30+%; but reality is around 10% vs 30%); Services tax (7% vs 15%); Corporate tax. Whatever we say India is way higher compared to Singapore in terms of tax rates.
Then why the revenues are low compared to Singapore? Answer lies in the coverage. :)
Here is a small chart showing the receipts breakdown. I've used 2012 numbers (may be will update with 2013 after Indian budget) but the % terms gives us why Singapore is doing a great job.
It is about the coverage of the tax umbrella and not to depend on borrowings.
Singapore is considered as a "low tax nation" and the taxation is pretty low compared to India. Be it the individual income tax (max 20% vs 30+%; but reality is around 10% vs 30%); Services tax (7% vs 15%); Corporate tax. Whatever we say India is way higher compared to Singapore in terms of tax rates.
Then why the revenues are low compared to Singapore? Answer lies in the coverage. :)
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