India is considering tax cuts for the first time in 7 years as part of a $6 billion boost to consumer spending.
Proposals to reduce taxes for individuals earning 500k to 1.5 million rupees are being discussed.
Despite potential revenue loss, the government plans to stick to its fiscal deficit target of 5.1% of GDP.
Annual cash payments to small farmers may increase to 8,000 rupees, up from the current 6,000 rupees.
Discussions are underway to increase payments under the minimum job guarantee program and support women farmers.
Finance Minister Sitharaman is consulting with economists, trade unions, and industry chambers for budget preparation.
BJP may shift toward more populist spending measures due to recent electoral performance and upcoming state elections.