NEW DELHI: The second Narendra Modi-led BJP government on Friday appointed Nirmala Sitharaman as the new finance minister . Sitharaman replaced Arun Jaitley who decided to opt out on health grounds.Jaitley, in a letter to Modi, mentioned that he had faced some serious health challenges in the last 18 months and needed to recuperate.“I should be allowed a reasonable time for myself, my treatment and my health, and, therefore not be a part of any responsibility, for the present, in the new government,” Jaitley stated.Sitharaman, a former JNU alumna, has worked with a consulting firm in London before joining politics. Sitharaman's familiarity with the finance and commerce and industry ministries might be the key reason for her appointment.Sitharaman, 59, will be now the senior most woman minister in PM Modi's cabinet and the second woman to head the finance department after late former Prime Minister Indira Gandhi.When the new finance minister steps into North Block, one of the first issues that she will have to deal with is raising more resources, given the BJP’s ambitious plan to expand some of the social sector schemes and the mega investment push announced in the party’s manifesto.Although many are expecting a tax stimulus to revive demand, officials are virtually unanimous in suggesting that a tax cut is not an option that should be pursued, either in direct taxes or on the GST front. “Already, the target is stiff and a reduction will only make meeting the deficit target tougher,” said a senior official.The government is already considering rolling out a slew of 'big-bang' economic reforms in the first 100 days of PM Modi's second term, with a focus on privatisation of state assets and relaxation of labour and land rules for businesses, a top official at the government's main think tank told news agency Reuters.PM Modi also named S Jaishankar, a former foreign affairs secretary, as new external affairs minister. He will take over from Sushma Swaraj, the ruling party's veteran leader and the previous most senior woman in the cabinet. She has also stepped aside due to poor health.This is the first time that a diplomat has been appointed as foreign minister.Read this story in Bengali