New Modi dispensation to cut personal taxes to revive economy

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New Delhi: The new Modi dispensation may present budget in early July and its priority is to cut personal taxes to revive the economy.

Media reports said the biggest challenge with the new Modi government is to put the economy back on the track.

Officials said a plan to kick start investment for stimulation of  demand has already been drawn up as the incoming administration gets ready to present a full budget in July.

It is expected that India’s economic growth is likely to be slowed down to 6.5% in the fourth quarter of last fiscal.

Slowing car sales in recent months and slowdown in consumer goods sector suggests waning demand as private investment is missing.

Officials said the budget is likely to be presented in early July which will ensure cuts on personal taxes to increase the purchasing power of the middle class. This will urge people to spend more and boost demand.

The government may come out with measures to push public investment in infrastructure as private sector investment may take time to kick in.

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