Filling the gaps in GDP
The low ratio of fiscal revenue to GDP doesn't mean the government has not got enough from the national annual income, says an article in Changjiang Daily. Excerpts:
Let's put two recent news reports side by side: one says that the central government is mulling over a plan to increase the ratio of incomes from labor to national income initial distribution. The other says that the current ratio of fiscal revenue to GDP - up from 24 to 30 percent between 2003 and 2007 - is lower than the world average of around 40 percent.
The two reports are making two different points. The plan in the first one is meant to allow the masses a bigger share of the cake (of national income) while the ratio in the second one seems to tell us that what the government cuts off from the cake is not a big enough chunk.