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In the second half of the 1980s, when the Government of India pursued its expansionary fiscal policies to support growth from the deficits, it contributed to the foreign exchange crisis in 1991. In the aftermath of the macroeconomic crisis of 1991, a comprehensive reform programme was launched in India. Since then, the goal of consolidating public finances has been high on the agenda of the Government of India. The structuring of the tax system constitutes major components of fiscal reformsdoi:10.15373/2249555x/june2014/175 fatcat:mtt7w6nsdbfhrmyngwpgamczsu