Goods and Services Tax, Public Expenditure, and Economic Growth in India: An Empirical Assessment

The introduction of the Goods and Services Tax (GST) in India brought a major change to the country’s indirect tax system. By replacing multiple central and state taxes with a single unified framework, GST aimed to improve revenue collection, strengthen fiscal management, and support economic growth. This study examines the relationship between GST revenue performance, public expenditure, and economic growth in India using officially reported macroeconomic and fiscal data for the period from 2016 to 2023. The analysis focuses only on observed outcomes and does not rely on projections or assumptions. The findings show that GST has been associated with improved tax revenue performance, higher capital expenditure, and better fiscal consolidation, even though short-term disruptions were observed during periods of economic stress. The study adds to the existing literature by providing evidence-based insights into how indirect tax reform can strengthen fiscal outcomes and support economic growth in a developing economy.