Tweak slabs, put more money in tax payers' hands to boost consumption

Altering personal tax rates with this goal in mind will help boost consumption

India has been facing a broad-based slowdown in economic growth. Private consumption in the first half of FY20 grew at a meagre 4 per cent on year-on-year basis, compared to over 8 per cent in FY17. While this is worrying, the situation has been further exacerbated by the growth in investments being projected at a meagre 1 per cent in the current year—a significant low since FY03. All eyes are now turned to the Union Budget, hoping for a much-needed fiscal nudge that can revive the Indian economy and correct its growth trajectory.

Tweak tax slabs: The anatomy of this