Cutting Fiscal Deficit has Become Obsession

Managing fiscal deficit seems to be more important for the Finance Minister of India and for this holy cause he increased the effective taxes on common folk than increasing the revenues by expanding economic activities and that too in times of crises where consumer confidence is so low. 

Increasing tax can be an option to manage deficit in an economy that is facing severe deficit problems. But it is dependent upon other macroeconomic indicators and factors. But it is always advisable that government should try to keep tax rate reasonable else that will result into black economy getting bigger with every passing day. And today it does not seems that situation is so worse that it needs to anyhow increase effective tax rate; corporate or personal.