Times of India had the following story-
Stimulus may be rolled back as recovery sets in With the economic slowdown bottoming out, the stage could be set for a "gradual and caliberated" rollback of revenue giveaways contained in the stimulus packages, starting with a review of the 2% excise and service tax cuts announced in the interim Budget.
The confidence that the economy might have turned the corner is growing in government and its attention is turning to the fiscal deficit that has grown larger in view of Rs 70,000 crore of revenue concessions coupled with big spending plans and reduced tax collections. The fiscal deficit has been put at over 10% of GDP.
It is the excise and service tax cuts amounting to Rs 30,000 crore that may be reviewed first....
continuedMy 2 cents on this story-
1. Overall, it is a very bad idea to even consider thinking about
2. Its seems like the govt has become not only optimistic but also certain about the future. I think there is still time for the recovery. India's growth is not going out of control. So why dampen it??
3. Govt cannot be uncertain about the steps it is going to take. This level of uncertainty will trickle down to the other economic agents and lead to delay in decision making
4. No need to worry about the debt. We are in control. Pulling back stimulus is a very naive way of controlling debt
5. Inflation is also under control
6. I am not sure about whether the govt considers the earlier rolled out packages as a success and a key reason behind the slight growth recovery. If it does, then I would would say that govt by pulling back stimulus would be just killing the geese which had been laying golden eggs