"Some of our reforms, which we have missed out on in the last few months, have to be pursued with a single-minded focus. We cannot afford a change in direction, and in these circumstances, every state has to contribute," the minister said.

Stating that the world economy was going through an extremely difficult and challenging time and difficulties, he said this had "spilled over into our system also".

Jaitley pointed out the World Bank has lowered the global growth forecast to 2.9 percent while the growth rates of economies across the world are hovering around extremely low figures.

"Many of our competing economies are facing extremely serious challenges. In an integrated economy, a large number of those challenges and difficulties gets spilled over. So because of the integrated economy, what happens in China, what happens in oil prices, impact our markets. Our revenues also get impacted, when the price regimes are low because nominal GDP gets reduced," he said.

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