Worst-case scenario is a 0.5% fiscal slippage: Ashima Goyal on tax cut

If towards the end of the year, government finds that the deficit is rising, then they may cut expenditure, Goyal said

Ashima Goyal, member of the Economic Advisory Council to the Prime Minister, spoke to Arup Roychoudhury on the corporate tax cuts announced by Finance Minister Nirmala Sitharaman, and the impact it could have on growth and the fiscal situation. Edited excerpts:

What effect do you think the latest announcements will have? 

The tax reductions announced today (Friday) will enable more entry (of new players) and lead to domestic firms opening more units, which are long-term assets. Immediately, you have seen the markets rally, that creates wealth asset. For individuals, the prospect of jobs increases. In India, you were suffering a lot from