Refer the given text carefully: According to the Economic Survey 2024-25, the government budget’s projections for the fiscal year 2025-26 indicate…

Refer the given text carefully :

According to the Economic Survey $\displaystyle 2024$-$\displaystyle 25$, the government budget’s projections for the fiscal year $\displaystyle 2025$-$\displaystyle 26$ indicate that gross direct tax revenue will rise by $\displaystyle 12.7$%, while gross indirect tax collections are expected to grow by $\displaystyle 8.3$% relative to FY $\displaystyle 2024$-25.

Direct taxes include income tax and corporate tax, reflecting earnings and profits of households and firms. It plays a key role in revenue growth of the government. Indirect taxes encompass Goods and Services Tax (GST), custom duties and other transaction-based levies.

Higher growth rate projected for direct taxes suggests a push to enhance tax buoyancy through improved compliance and reforms. On the other hand, indirect taxes are expected to benefit from consumption trends and Goods and Services Tax (GST) administration improvements. The balance tax strategy aims to mobilise resources while supporting fiscal consolidation and sustainable economic growth.

On the basis of the above passage and common understanding, answer the following questions :

Differentiate between the two types of taxes indicated in the above text, with suitable examples.

Elaborate the likely consequences of the tax projections made by the government.