The Importance of Direct Taxes in the Indian Economy

I would say that, you know, subsidies need to be distinguished between specific and general subsidies. A general subsidy is necessitated by the macro situation of the economy whereas specific subsidies to sectors or companies are based on micro level decisions taken by governments. In the case of the latter, cronyism can play an important role there and which is not necessarily an efficient thing to happen. And I think that's what you were referring to earlier. Now, indirect taxes tend to be regressive. So those at the bottom need to be supported by a subsidy. When we do that, then subsidies to the poor in lieu of short wage payment would not be acquired. Yeah. That is a great discussion