This article is from PTI(Tuesday July 7th,2009):

No roll back of tax cuts:FM

New Delhi, July 7 (PTI) The Government today assured industry that it will not roll back the tax cuts announced in the stimulus packages and its high market borrowings of around Rs 4 lakh crore will not dry up resources for the private sector. "I have no intention of rolling back (tax cuts given in stimulus packages).

No doubt I have taken a risk. A risk of leaving fiscal deficit of 6.8 per cent, which is perhaps the highest ," Finance Minister Pranab Mukherjee said in his interaction with industry chambers, CII, Ficci and Asshocham.

The Finance Minister also said that he would strive to bring down high fiscal deficit of 6.8 per cent of the GDP projected for the current fiscal to 5.5 per cent in the next fiscal and four per cent in 2011-12. "Therefore, I myself and my colleagues in the Finance Ministry have undertaken a strenuous job that in the next 7-8 months, we shall have to do a lot of work so that we can reach this target in 2010-11 and 2011-12," Mukherjee said.

High fiscal deficit will force the government to borrow around Rs four lakh crore from the markets this fiscal, which many fear would crowd out private sector investment, an apprehension that led to a crash in stock markets yesterday. It is this fear that Mukherjee allayed today