The government Wednesday ruled out rollback of tax cuts offered to various sectors as part of the fiscal stimuli announced earlier and said it intends to bridge the fiscal deficit largely through internal resource mobilisation.
"The economy is slowly reviving. There are offshoots of recovery but we do not intend to roll back tax cuts given as part of fiscal stimuli in December last year," said Finance secretary Ashok Chawla at a post-budget interactive session organised by the Confederation of Indian Industry (CII) here.
Reacting to the perception that the government borrowing was too high and would increase fiscal deficit, Chawla said the deficit would come down 1 percent next year and subsequently as well.
Stating that the government intended borrowing Rs.4 lakh crore, he said: "The entire amount will not come from market borrowing. It would also come through treasury bills and securities. We do want to stress the bond market and the disinvestment process. By this borrowing we want more growth and more spending done."
The finance secretary said the Rs.4 lakh crore would amount to 40 percent of the total expenditure this fiscal.
He also said the roadmap for divestment was being worked out, adding: "We will have a clear roadmap in three-four weeks."