No plans to revise fiscal deficit target: Sitharaman

Govt. won’t cut spending, says Finance Minister

Finance Minister Nirmala Sitharaman said the govt. would review the fiscal deficit target closer to the 2020/21 budget. File photo: Shiv Kumar Pushpakar

The government will not revise the fiscal deficit target immediately and is not planning any spending cuts at this stage, Finance Minister Nirmala Sitharaman said on Sunday.

The government cut corporate tax rates on Friday in a surprise move designed to woo manufacturers, revive private investment and lift growth from a six-year low that has led to major job losses.

The measures will cut revenue by ₹1.45 trillion in the current fiscal year, according to government estimates. But Ms. Sitharaman said the government would only review the fiscal deficit target closer to the 2020/21 budget.