Driving Growth: Budget Strategies Amid Global Economic Uncertainties

D K Srivastava, EY's chief policy advisor, emphasizes the need for India's Budget to focus on boosting domestic growth amidst global economic uncertainties. Key strategies include reducing personal income tax and increasing capital expenditure to stimulate consumption and investment.

D K Srivastava, chief policy advisor at EY, highlights the importance of focusing on domestic growth drivers in the upcoming Budget, amid global economic uncertainties. He stresses the need for strategies like reducing personal income tax and increasing capital expenditure to boost economic growth.

With urban consumption lagging, Srivastava, a member of the Advisory Council of the 16th Finance Commission, advocates for rationalizing personal income tax structure to enhance disposable incomes for the lower and middle income groups. He notes the necessity of balancing fiscal consolidation with fiscal stimulus.

Srivastava underscores the critical role of investment-driven growth in boosting domestic demand, projecting the fiscal deficit to decrease to 4.4% of GDP in the next fiscal year. He also suggests a potential reduction in interest rates by the RBI for additional monetary support.

(With inputs from agencies.)