Mobilizing resources for financing:
To mobilize resources for financing the development programs in the public sector:
Tax policy is to be directed towards efficient mobilization of all accessible resources and to harness them in the implementation of development programs. It implies, on one hand, diversion of wasteful and lavishness spending to saving and on other hand productive investment of increments which accrue to production as an outcome of development efforts. Taxation can be a most efficient means of raising the net quantum of savings and investments in any economy where the tendency to consume is usually high.
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