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| Govt needs to lower taxes to fuel growth: PMEAC |
| Press Trust of India / New Delhi Feb 09, 2009, 20:31 IST |
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 With about a week to go for the interim budget, the Prime Minister's Economic Advisory Council (PMEAC) today pitched for lowering of tax rate to fuel economy, which is reeling under the impact of global financial meltdown.
"The tax rate reduction is desirable in the current context... It could essentially generate more purchasing power," chairman of PMEAC Suresh Tendulkar told reporters on the sidelines of a round-table on "Economic Outlook 2009-10".
His remarks assume significance as the government is finalising interim budget and vote on account which will be tabled in Lok Sabha on February 16 by External Affairs Minister Pranab Mukherjee, who is also holding the finance portfolio.
On the need of another stimulus package to boost economic growth, which is expected to slide to 7.1 per cent from 9 per cent a year ago, Tendulkar said, "Another stimulus package in the interim budget cannot be ruled out."
Because of pending general elections, the government will be coming out with an interim budget and vote-on-account to seek approval of Parliament to meet essential expenditure during the first four months of next financial year. The final budget is likely to be tabled sometime in July by the new government.
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