FM Sitharaman rules out any immediate plan for expenditure reduction

No change in fiscal deficit target for now, says FM Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Sunday said she hoped steep cuts in corporation tax rates would increase compliance, prompting her to stick to the fiscal deficit target for now.

“A call will be taken at the RE (Revised Estimates) stage,” Sitharaman told mediapersons, two days after she announced big-bang tax reductions for companies.

The cuts would cost the exchequer Rs 1.45 trillion a year.

She ruled out any expenditure cuts as of now, saying that her ministry was asking for a quick release of money by departments and ministries.

Even as bond yields went up after the announcement on