Low revenue mobilization barrier to economic development, says IMF

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Low revenue mobilization is a main obstacle to economic development in low income countries, the Fiscal Monitor of the International Monetary Fund indicates.
 
Low revenue mobilization limits the ability to fund pro-growth spending such as health and education infrastructures, the Fiscal Monitor indicates in a survey.
 
A low tax ratio is often associated with a lack of institutional capacity, the survey highlights.
 
The IMF survey shows that almost half of the low-income countries like South Sudan have a tax ratio below 15 percent of the Gross Domestic Product.
 
The survey recommends adequate revenue mobilization as a fundamental component of growth and development strategy in low-income countries.
 
The Fiscal Monitor shows that some fiscal measures such as well targeted tax credits for research and development are very powerful tools for promoting innovation, productivity and growth.