A decrease in tax to GDP ratio of a country indicates which of the following?
1. Slowing economic growth rate
2. Less equitable distribution of national income

The tax-to-GDP ratio is an economic measurement that compares the amount of taxes collected by a government to the amount of income that country receives for its products.That income is measured in terms of the gross domestic product, or GDP, which is the sum of all products and goods sold, personal and government investment, and net exports. By comparing this amount to the amount that is collected in tax revenue, economists can get a rough idea of how much the economy of a specific government is fueled by its tax collection.