Even as the government is considering potential fiscal relief measures, sources at North Block say that the Centre is working within 'limited resources'.
While relief measures and other steps could be on the cards, as far as fiscal headroom is concerned, the envelope is limited.
According to sources, a 10 percent GST rate cut for automobiles would cost Rs 50,000 crore to the Centre and the states annually. Slow Q1 spending on back of elections is helping the Centre maintain fiscal balance. But expenditure pick up from Q2 is leaving little fiscal headroom.