The net effect of the $12 billion in tax cuts announced in the annual budget will probably be a 10-20 basis point increase in the growth rate in the fiscal year starting April 1, Motilal’s economists Nikhil Gupta and Tanisha Ladha wrote in a note. Consumers will likely use part of the tax relief to reduce debt, which has risen sharply to about 52% of income now from 35% a decade ago, the economists said. Any boost to household spending will be “offset by slower growth in fiscal spending,” they wrote. @Bloomberg