In a post on X, Shenoy laid out his argument: “Cutting taxes will improve consumption and push up our economy. We have a bloated government too, so let’s cut income taxes, and sell over-owned public companies.”
Shenoy sees cutting taxes as a way to revitalize consumption, a crucial driver of growth. He also suggested reducing excise duty on fuel, which he believes would be a game changer. “Excise cuts on fuel will provide the single largest boost to everyone across the board. It will cut inflation and allow the RBI to reduce rates, enabling freer credit flow to individuals,” he said.
Addressing concerns about a potential economic slowdown, Shenoy dismissed fears of a structural downturn. “We’re not in a structural slowdown. This country has incredible growth opportunities. Fixing a few smaller issues can unlock a lot of potential,” he explained.
But where is government spending going? According to Shenoy, the problem lies in inefficiency. “Too much spending goes to areas like free food that isn’t used, teachers who don’t report to schools, people who don’t work, and projects that never see the light of day,” he said.
Meanwhile, critical sectors such as education, policing, and the judiciary are underfunded.
For Shenoy, empowering private spending is the key. “The government hardly spends properly. Let private people spend,” he urged. He also called for a shift in policy thinking beyond electoral benefits, noting that economic decisions should focus on enabling growth rather than expanding the size of the government.
On consumption, Shenoy clarified that while it hasn’t collapsed, it isn’t rising fast enough. “Consumption isn’t down. The problem is it’s not going up fast enough,” he said.
By cutting taxes and enabling more disposable income, he believes the government can address this issue effectively.