The high prices have made a hole in the pockets of the "aam aadmi". Government investments have also been disappointed by this increase in prices of commodities and building materials. One major cause for rising prices is due to the tax to GDP ratio.

There may be danger of slipping to single-digit next fiscal after declaration in double digits for the last three years. The governments are pressured to improve revenue collection in the next fiscal and to exercise actions.

Sources have informed media group The Indian Express that the government will face difficulty in planning the Budget for the next fiscal because of increasing prices. When it comes to increasing tax to GDP ratio the government will face problem in the spray in prices.

In last fiscal year there had been a fall in Tax-GDP ratio about 10 per cent which has now grown higher to over 11 per cent during 2007-08 from 8.2 per cent in 2001-02. It has been found that there is no equality among the growth in tax collection and the economic growth of the country.