# The Predictive Grey Forecasting Approach for Measuring Tax Collection
## 6 Practical Implications  
Based on the study's first objective, \"to understand past direct tax collection trends and patterns in India\", the study's findings assist in determining historical growth rates and peaks and dips in tax collection. Understanding trends could shed light on how economic conditions, legislative changes, and global variables have influenced tax collection in the past, in addition to indicating consistent trends, which can help with future estimates. Furthermore, based on the study's second objective, \"to forecast direct tax (representing personal tax, income tax, and other tax) collection in India\", the findings reveal that accurate direct tax forecasting can help with fiscal policy and budget planning. Such forecasting can aid in economic planning by allowing the government to better estimate revenue from personal income taxes and help policymakers modify tax rates or implement reforms based on expected deficits or surpluses. After exploration of the third objective, \"to forecast indirect tax collection in India\", this study reveals that forecasting indirect taxes, such as GST, allows the government to estimate revenue from consumption-based taxes. This is critical for financial planning and controlling public spending. It can also help guide decisions on consumer tax adjustments to fulfill fiscal aims. Lastly, based on the fourth objective, \"to unveil the relationship between indirect and direct taxes by analyzing the proportion of direct tax as a percentage of the total tax\", this study can help readers to understand how the balance of direct and indirect taxes changes over time, indicating whether the government relies more on consumption or income taxes, which may affect tax justice and economic growth policies. The reported results may also lead to policy changes aimed at improving tax structure balance. Recommendations for policy are outlined as follows:  
* The government should continue to enhance tax changes to capitalize on the expected income growth. This involves digitizing tax administration systems and increasing anti-evasion measures to improve compliance and revenue collection. * Given the anticipated increase in tax revenue, the government should prepare for long-term investments in vital areas. One way to improve economic resilience and societal well-being is to prioritize sustainable projects in areas such as infrastructure, education, and health. * The government and financial institutions should consider using more advanced forecasting models, such as the grey forecasting model, particularly in areas with ambiguous or complex data. This can help to produce more accurate economic and budgetary forecasts. * Despite the good outlook, the government should remain prepared for economic shocks such as global recessions or pandemics. Creating contingency savings and diversifying income streams outside taxes may improve fiscal resilience. * Given the economy's changing nature, authorities should routinely evaluate tax revenue trends and adjust policies as needed. Continuous monitoring of tax revisions and compliance activities will be critical to staying on track with the expected increase. The government should guarantee that increased income is invested in areas encouraging inclusive growth by targeting all 17 sustainable development goals (SDGs). Focusing on rural development, job creation, and poverty reduction will ensure that the advantages of economic expansion reach everyone, which can also be enhanced integrating policies resulting an increase in total tax collection. Conceptualization, S.K. ; methodology, P.K. ([PERSON]); software, P.K. ([PERSON]); validation, P.K. ([PERSON]); formal analysis, P.K. ([PERSON]); investigation, P.K. ([PERSON]); resources, M.B. ; data curation, M.B. ; writing--original draft preparation, P.K. ([PERSON]); writing--review and editing, P.K. ([PERSON]), M.B. and S.K. ; visualization, S.K. ; supervision, P.K. ([PERSON]); project administration, S.K. ; funding acquisition, M.B.