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Tight revenue position may rule out sops in Budget
Tight revenue position may rule out sops in Budget

New Delhi, Dec 26 (TIWN) Given the tight revenue position of the government, Union Budget 2020-21 may not be giving out any extraordinary fiscal sops just to boost personal income to push consumption and demand and would be taking a sectoral redressal policy where interventions are needed, officials said.

"Government is not averse to put growth as a top priority over fiscal prudence and spending will happen where it has a direct bearing on the consumption and demand. Income Tax rejigs have been sought by the industry, but the government is not convinced so far that it may lead to any surge in consumption that's the need of the hour on the supply side", said an official, adding after income tax cuts (if it happens) government fears people may just save and not spend, defeating the entire purpose taking a huge risk on direct tax front when it is not on a promising trend.  "There is little fiscal headroom unless government takes a huge risk in tax cuts further after giving corporate tax cuts in September in Rs 1.45 lakh crore outgo. That has so far not shown any result", said officials while adding we have to wait till fiscal ending to be through the lag period to see impact on corporate tax cut benefits.  But the Finance Minister has said direct tax revenues are on the rise.

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