Budget should look to push rural demand, not reduce I-T rate: Economists

Ajit Ranade, chief economist at Aditya Birla Group, said, "I don't think a cut in the personal income tax is a good thing to do at this juncture."

The government in its Union Budget 2020 should focus on boosting rural demand to perk up the economy instead of cutting the personal income tax rate, said economists at a panel discussion on Saturday.
 
At the annual convention of the Federation of Indian Chambers of Commerce & Industry (Ficci), Shekhar Shah, director general at the National Council of Applied Economic Research (NCAER), said had there been no Budget constraints, both personal income tax and rural demand could have been given a push. However, in the real world, an income tax cut would not have as much impact on demand