Tax rates have not been raised in the 2009-10 budget proposals, as economic conditions remaindifficult while tax relief for individuals would help boost consumption, Finance Secretary Ashok Chawla said in New Delhi on Monday.

The finance minister has cut the excise and customs duty due to the global economic meltdown. The finance minister has also done away with surcharge on income tax which was yielding Rs.5,000-6,000 crore.

Expecting the GDP to grow at 7% this fiscal, Chawla said it was the conscious decision of the government to go for a higher fiscal deficit so that the economy could return to high growth rates. 

"The objectives we focused on were sustaining high levels of growth, increase in public spending and boosting private investment," said Chawla. 

He also said that divestment of state-run firms would help the government to reduce the fiscal deficit and such stake sale would be carried out in a phased manner.