Which of the following statements is/are correct?
- A low debt -GDP ratio denotes higher capacity to meet debt obligations
- A low tax-GDP ratio denotes higher equitable distribution of national income
Which of the above is / are correct statements?
The second statement is written reverse. A higher tax-GDP ratio means more taxes are part of GDP and shows more equal distribution of national income.
This question is a part of GKToday's Integrated IAS General Studies Module