Spending to make up for tax cut this year itself: FM

Centre to maintain budgeted fiscal deficit target of 4.4% this financial year

- Gireesh Chandra Prasad & Utpal Bhaskar

Higher purchases of goods and services after the GST rate cuts take effect on 22 September will likely make up for the impact of lower tax rate on revenue receipts this year itself, a set of measures to support exporters are in the offing, and further flexibility in allowing entry of professionals from China is expected, finance minister Nirmala Sitharaman said in an interview.

The minister stressed that on account of the expected boost arising from the consumption stimulus, the Centre will maintain its budgeted fiscal deficit target of 4.4% this financial year.

Sitharaman said that her next big test would be ensuring that businesses pass on the benefit of the steep GST rate cuts to the common man.