'Immediate measures needed to propel economy'

Union Budget 2020: Immediate measures needed to propel economy

(Credit: iStockPhoto)

By Basavaraj Puttappa

In the wake of recent developments, it is apparent that the economy is showing signs of a slowdown. The government is on the ‘disaster management’ mode to get the economy back on track.  Given the situation, the Budget is expected to focus on immediate measures to propel the economy towards growth. The government has already reduced corporate taxes and might also consider cutting down personal taxes.

Such a move will increase consumption levels and stabilize the economic slowdown. However, this would increase the fiscal deficit and might put inflationary pressures on the economy. Thus, along with the tax relaxations, the government can push-up the tax exemption levels on long-term capital gains. Formulating such a strategy would increase investment and boost the capital market.

(Basavaraj Puttappa is the Founder and CEO of Zeva Astras)