New Delhi delivers tax cuts to spur economic growth


Consumption boost: Nirmala setting out to present the budget in New Delhi, last Saturday. The government predicts the economy will expand 6.3% to 6.8% in the coming fiscal year. — Bloomberg

New Delhi: India’s finance minister gave middle-class consumers one trillion rupees or about US$11.5bil in tax relief in her budget last Saturday, seeking to shore up a slowing economy as global risks worsen.

Individuals with annual income up to 1.2 million rupees will effectively be exempt from paying income tax, Finance Minister Nirmala Sitharaman told lawmakers in New Delhi, raising the cap from 700,000 rupees. She also announced a slightly smaller budget deficit for the coming fiscal year, with a modest increase in infrastructure spending.

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