The increase in government spending as well as tax cuts evidences expansionary measures that have employed by the Indian government. Expansionary measures seek to accelerate economic growth by increasing the economic transactions through affecting the monetary supply; this feat is achieved by increasing government expenditure and reducing tax rates. The complimentary monetary policy should be reducing the cash rate, which, will serve to increase the supply of money within the economy thus spur growth. The concerting of reduced cash rates, tax cuts, and increased government spending will accelerate economic growth in the Indian economy.
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