Sitharaman picks fiscal discipline over calls for stimulus to economy

Sitharaman will be relying on an ambitious revenue target to narrow the deficit as the government reins in spending: she plans to increase taxes on the wealthy, raise duties on gold and gasoline

Finance Minister Nirmala Sitharaman resisted calls for a fiscal boost to spur a weakening economy, sticking instead to a plan to narrow the budget deficit over time by keeping spending in check.

The fiscal deficit target for the year that began on April 1 was lowered to 3.3 per cent of gross domestic product from 3.4 per cent set in February’s interim plan, the FInance Minister said in her maiden budget in Parliament in New Delhi on Friday. The deficit is forecast to come down even further to 3 per cent of GDP by March 2021, according to the Finance Ministry.

Sitharaman,