The government on Sunday ruled out any mid-term cut in direct tax, including personal income and corporate taxes, saying it was premature to talk about such measures.

The Budget has already announced moderation in tax rates. The package is only looking at excise duty cuts, Cabinet Secretary K M Chandrasekhar told reporters to a question if the government would slash income tax as a stimulant to the economy.

"It is premature to talk about direct tax cuts," Finance Secretary Arun Ramanathan said.

The government, in a mini-budget of sorts, today reduced across-the-board excise duty on all non-petroleum products by four per cent and raised the expenditure by Rs 20,000 crore in addition to announcing specific sops for exports and textiles sectors.