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.
How many of the above statements are correct?
1
Only one
2
Only two
3
All three
4
None