Vijay Sardana Online

Rs. 4.5 Lakhs Crore (USD 63 Billion) Consumption Boost for FMCG and Capital Goods, GST collection will also get a boost By: Vijay Sardana The interim budget is dominated by provisions for the rural farm sector and the working-class population, it means a major boost to a consumption economy. If everything goes as per plan, Indian economy will get additional Rs. 310 crores cashflow every day due to budget provisions only in consumer goods, agri-inputs and services industries. This budget will support consumption sector by increasing the disposable income in the hands of the middle and lower middle class because of the income support schemes, interest subvention and tax exemptions and this should domestic economic output, capacity utilization of factories and employment generation. The increased cash in the system because of the government income augmenting measures could have an inflationary impact which may boost farmers income which could, however, be restricted