The government will soon unveil measures to bring more discipline in spending and return to the path of fiscal consolidation, Finance Minister P. Chidambaram said Monday.
“We intend to unveil, shortly, a path of fiscal consolidation,” Chidambaram said in his first media interaction after taking charge of the finance portfolio.
The finance minister said he has formed a three-member panel to assist the government in formulating the path of fiscal consolidation. “We expect that the work will be completed in a few weeks,” he said.
In the union budget announced in March, the government set a target to reduce fiscal deficit to 5.1 percent in the current financial year. But the target is unlikely to be met due to high spending on subsidies, especially on petroleum products.
“I would like to make it clear that the burden of fiscal correction must be shared, fairly and equitably, by different classes of stakeholders,” he said.
“Poor must be protected and others must bear their fair share of the burden. Obviously, adjustments must be made both on the revenue side and on the expenditure side,” Chidambaram said without elaborating on what the government planned to do to cut spending.