One key question would be how the government plans to deploy fiscal policy tools that can both support long-term sustainable economic growth and generate higher tax revenue to reduce debt and accommodate growing expenses. It is interesting to witness a varied approach to tax reforms adopted by governments around the world. Will the UK’s proposed tax reforms lead to massive economic growth or will it follow the path of an unsustainable drop in tax revenue as witnessed by Sri Lanka? Expansion of a broad-based consumption tax that can provide a stable flow of tax revenue and is not subject to the fluctuations of economic cycles. Furthermore, the recovery period from a crisis, in this case the Covid-19 pandemic, is an opportune time to institute tax reforms.
