The Economic Survey 2016 has brought out that India taxes and spends less than OECD countries and even its emerging market peers. After adjusting for the level of economic development and democracy, India’s tax/GDP ratio is 5.4 per cent less than that of  2  6  https://www.imf.org/external/pubs/ft/wp/2015/wp15161.pdf.
BIS central bankers’ speeches  comparable countries, while its expenditure/GDP ratio lags by 6.4 per cent. Nearly 85 per cent of the economy is outside the tax net.