Canvassing for the BJP in R K Puram, a day before campaigning ends, Modi focused on the tax rebate for those earning up to Rs 12 lakh a year and the benefits of the 8th Pay Commission.

The announcement came just before the Delhi polls where BJP is locked in a fierce contest against Arvind Kejriwal’s Aam Aadmi Party. Aimed to spur consumer sentiment in general, the tax sops offered were also being seen as an attempt to woo Delhi’s 40 lakh income tax-payers.

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Addressing a rally here ahead of the Delhi assembly polls on 5, Modi spoke about various beneficial provisions of the Budget for the middle class to claim that never since India's Independence those earning up to Rs 12 lakh have received such a relief.

The government is trying to boost domestic demand among its vast middle class as food inflation dents disposable income.