new delhi a cut in personal income tax sops for rural and agriculture sectors as well as an aggressive push on infrastructure spending are likely to be part of finance minister nirmala sitharamans feelgood second budgetfacing the worst economic slowdown in more than a decade sitharaman is expected to pull out all stops to spur consumer demand and investment government sources and economists saidsitharamans second budget to be presented on february 1 is expected to announce measures to restore economic growth and to set out a clear road map for achieving the ambitious target of 5 trillion economy by 2025investments have failed to pick up despite corporate tax cuts and other stimulus measures higher fdi inflows plans to consolidate stateowned banks and monetary easingafter corporate tax cuts in september last year speculation is rife about possible reduction in personal income taxes a combination of an increase in the basic exemption limit andor the introduction of a differentiated tax rate structure for higher incomes may be on the cardsto cushion the impact on collections these tweaks might be accompanied by rationalisation in tax rebatesthe government announced a slew of stimulus measures in the last four months but consumer confidence is missing not many are eager to take loans to buy homes or cars fearing the worst the feel good factor in the economy is missing a senior government source saidi think the budget will be a feelgood budget that will try to restore faith in the economy and spur spending and investments the source saidwith disbursements under the pmkisan scheme to farmers being less than the budgeted amount the budget may also see measures to get states to onboard more eligible farmers under the schemealso there would be announcements for sectors such as renewable energy evehicle power affordable housing real estate and exports they saidfinancial markets are expecting relief on securities transaction tax stt long term capital gains tax ltcg and removal of dividend taxcapital infusion in public sector banks and liquidity measures for nonbanking finance companies nbfc may also be on the horizonboth the government sources and the economists felt the budget would reaffirm the focus on infrastructure spending after the rollout of an ambitious national infra pipeline nip in decembersocial sector schemes such as rural electrification mgnrega healthcare education and skill training may also find mention in the budgethowever all such measures would come at the cost of fiscal slippagethe economic survey for 201920 released on friday has already laid the ground by suggesting to the government to keep the focus on reviving growth and letting go of fiscal discipline a bitthe rbi armed with a favourable inflation backdrop defended slowdown risks last year with 110 basis points cut in interest rates as it puts a brake on the easing cycle due to an unseasonal spurt in food prices leading to abovetarget inflation the ball is in the governments court to revive growthsitharaman would have to do a balancing between efforts to boost growth and the need for fiscal