DMPQ- Highlight the advantages and disadvantages of Formalization of Indian Economy.

by

Advantages of formalization

  • Increased tax revenues for the government due to better reporting under taxation laws
  • Coverage of population under social protection plans, saving from financial distress during difficult times
  • Increase workers’ welfare and the opportunities for decent jobs
  • Reduce unfair competition between formal and informal enterprises arising from tax or regulatory arbitrage

Downsides of formalization

  • Exclusion of
    Join Our Telegram Channel
    48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
population, if knee-jerk steps are taken e.g. demonetization
  • Poverty and destitution as rapid formalization imposes additional costs on informal economy

    •  

    Get APPSC Mains DMPQ

    Mock Questions of Group Mains Exams

    Click Here

    error: Content is protected !!
    Exit mobile version