New Delhi, December 4
The government will cut interest
rate on small savings “cautiously” so as to protect vulnerable sections like
retired employees, Finance Minister Arun Jaitley said today while expressing confidence
that 7th Pay Commission report will not upset the fiscal deficit targets.
He said the government is using more
than three-fold increase in cess on petrol and diesel to fund infrastructure
projects like highways, but it will be a challenge to fund higher social sector
spending due to increased outgo on salary and pension.
Citing the
example of the girl child scheme launched last year, he said: “if after one
year you immediately slash it (interest rate) down radically, (it) may not be
very politically prudent and therefore you have to move in that direction but
you have to move a little cautiously”. — PTI
