VenkatIndia's government proposed to cut personal income tax rates to encourage spending by the middle class and vowed to invest billions of dollars on rural infrastructure and agriculture to shore up a slowing economy. Presenting the budget on Saturday, Finance Minister Nirmala Sitharaman said the government plans to scrap the 15% dividend distribution tax to make the country a more attractive investment destination. India's growth has slowed as debt problems at banks have choked business and consumer spending in Asia's third-largest economy. To boost middle-class spending, the finance minister proposed personal income tax cuts of 5 to 10 percentage points across various income levels. For the next year, the government has set the fiscal deficit target at 3.5% of GDP, she said.

Source: Wall Street Journal February 01, 2020 11:15 UTC