The delays to pass on the money are due to a slip in collections and the states have nothing to worry, said FM Nirmala Sitharaman.

FM Nirmala Sitharaman is likely to present her second Budget for the Modi 2.0 government in Parliament on February 1.

GDP growth slowed down to more than six-year low of 4.5 pc in second quarter of current fiscal from 5 pc recorded in first quarter.

The ETF, called Bharat Bond ETF, will have a fixed maturity of three and ten years .

Govt is committed for further reforms in sectors such as banking, mining, insurance among others said FM Sitharaman.

Historically, maximum collection of direct taxes happens in the last quarter of the fiscal, she added.

The main objective of the reduction in corporate tax was aimed at attracting fresh investment in the manufacturing sector.

Her remarks drew varied responses with the opposition Congress seizing on it to criticise the government.

PM Narendra Modi has taken various measures since 2014 to boost economic growth, including cutting the corporate tax.

Bankers have blamed lax regulations and said some bank officials were working in league with fraudsters.