DEVELOPING COUNTRIES COULD NOT IGNORE THE TAX GDP RATIO, AS REQUIRED FOR THE PROTECTION OF DEVELOPMENT OF THE COUNTRY.

The state governments are regularly depending upon the system of loaning and funding through outer and the inner investments since long for which all the governments are responsible for the situation and the central government is too responsible to help the state government in present conditions of the financial exchequer eroded to the debit under very low profile of the probability factor for the innovative policy adopted by the present government to tackle the situation and position of the global challenges, where every state government and the central government dealing with the problems unsuccessfully after corona, As such all the appropriate authorities are responsible to work on the captioned subject of policy related matters jointly , as such the capacity of the residents to pay genuine taxes also increases as incomes rise. More over the ability of the governments to raise taxes may also increase with the development levels , as the per capita GDP of a nation goes up, the informal nature and state of the economy decreases which in turn enhances the capacity of the government to increase the tax revenue. Ultimately the tax GDP ratio increases with increase in GDP per capita, as such the developed countries have higher tax GDP ratio than low income countries. Keeping in view the predicted values of the tax GDP ratio it is necessary for the developing countries to follow improved system of the new lines created by the developed countries to work for their economic reality instead of the assurances, where there is no commitment and truth in the expansion of the business and trade as well as employment at their level of the global economy.