Paper Details

Since ages it has been evidenced that, be it a king of an Empire or a ruling government of a country both have a practise of collecting taxes in a fair way. The people of the state also agree for payment of taxes to the government or the King. The main reason behind this is that the people of the state believe that the taxes that they pay to the government are being utilised by the government for the welfare of the people of the state. The levy of taxes on the income of the people is for the better. According to Kautilya the power of government lies in its treasury. He stated – "From the treasury, comes the power of the government, and the Earth whose ornament is the treasury, is acquired by means of the Treasury and Army". He said that the main reason for collection of taxes and revenue was for the protection of the people and maintenance of law and order in the state which was a prime duty of any King. He also mentioned that it was not mandatory for the subjects to pay taxes to the state but it was relationship based on dharma and it was the primary duty of the King to protect the people in view of taxes collected and if the King failed to do so the people had an exclusive right to abstain from paying taxes and also could even ask for the refund of their taxes paid. This paper throws light on the collection of taxes post Goods and Services Tax implementation in India and also on the public expenditure made by the government since the launch of GST in India. The paper also explains the importance of government spending on the sustained growth the economy.

Taxation, Public welfare, Public Consumption Expenditure, Economic Growth, GDP.