Tax break will kick-start slowing economy: Centre

• Finance Secretary, Pandey, explains the potential economic benefits of the tax stimulus.

• The stimulus will be distributed in a more equitable manner, allowing consumers to choose between consumption, saving, and direct investment.

• The tax stimulus will stimulate demand, private investments, and bank deposits, boosting India’s savings rate and supporting credit flows to critical sectors like MSMEs.

• The tax stimulus will also help address the slowdown concern by boosting demand engines and addressing the weakening growth engines of demand.

• The budget is “absolutely non-inflationary”, with the fiscal deficit at 4.4% of GDP.

• The effective capital expenditure is kept at ₹15.48 lakh crore, with government funding supporting States’ capex and another ₹5 lakh crore from public sector firms.