The government would wait and watch the situation before deciding on rolling back the stimulus packages announced after India's economic growth slackened impacted by the global financial crisis.

"We will have to wait and watch the situation," Finance Minister Pranab Mukherjee told reporters on timing of reversal of the stimulus package. The government had slashed excise duty by six per cent and service tax by two per cent in various phases and increased Plan expenditure. This has pushed the fiscal deficit higher.