New Delhi, Feb. 26 -- India has to maintain tax buoyancy between 1.2 and 1.5 in order to fulfil its Viksit Bharat vision and reach a medium-term growth trajectory of 6.5-7.0, said an Ernst & Young (EY), a multinational professional services firm.

By definition, tax buoyancy refers to the responsiveness of tax revenue to the growth of a country's economy. It measures how well tax revenue increases as the economy grows.

EY India's Economy Watch further adds that India's fiscal strategy must focus on enhancing tax buoyancy, prudent expenditure management, and structural reforms to ensure sustainable growth.

The report says that maintaining the ideal balance between the demands of growth and budgetary consolidation will be essential in lig...