Fiscal deficit management is crucial for economic stability. In recent years, governments have implemented various strategies to reduce their fiscal deficits. One such strategy is to increase tax revenues without increasing tax rates. This can be achieved by expanding the tax base and improving tax compliance.
For instance, the government can introduce incentives for taxpayers to comply with tax laws, such as rewards for timely payment of taxes. Additionally, the government can invest in technology to improve tax administration and reduce evasion. By implementing these strategies, governments can reduce their fiscal deficits and achieve economic stability. With a fiscal deficit of 6.4% of GDP, the government aims to reduce it to 5.5% by the end of the year.
This can be achieved by a combination of revenue increase and expenditure reduction.