Amidst the growing industry pressure to continue with the stimulus measures, the Finance Ministry said too much support is not desirable and can harm a reviving economy.
"Too much of stimulus, when the body is getting healthy, is not good; it can be injurious to health," Finance Secretary Ashok Chawla said at a seminar on textiles organised by the industry chamber Ficci in New Delhi on Wednesday.
At the pre-Budget meeting with Finance Minister Pranab Mukherjee on Tuesday, the heads of apex chambers had pressed hard for continuation of the fiscal stimulus packages, which they felt, helped revive the economy hit by global credit crisis that began in September 2008.
Tata Group chairman Ratan Tata had also joined Ficci president Harsh Pati Singhania, Assocham chief Swati Piramal and CII president Venu Srinivasan in seeking extension of the fiscal sops till September.
December 2008 through February 2009, the Centre extended a slew of stimulus measures to help revive the economy.
On the taxation side, beginning December, it had slashed excise duty by six per cent, and service tax by two per cent.
On the other hand it also massively stepped up Plan expenditure. All this had fiscal deficit shooting up to an estimated 6.8 per cent this year.
That apart, the RBI too eased all key interest rates to pump money into the system.
And the booster measures worked sooner than expected, with the economy growing by 7.9 per cent in the second quarter from 6.1 per cent in first three months of the fiscal.