With reference to Economic Survey 2022-23, consider the following statements regarding Tax Buoyancy:
1. Tax buoyancy defines the relationship between the changes in the government’s tax revenue growth and the changes in GDP.
2. A higher buoyancy reflects the increased efficiency of the tax system.
3. Goods and Services Tax(GST) collection is showing a higher buoyancy than the pre-GST system.
Which of the above statements is/are correct?
1
1 only
2
1 and 3 only
3
1, 2 and 3
4
3 only