Govt to prioritise fiscal plans, spending in remaining half of 2012-13

Fiscal prudence is in the air. A letter from the finance ministry has been forwarded to financial advisors of various ministries stating that no new scheme in the current financial year will be approved.

Sources confirmed to MAIL TODAY that the government is taking a hard look at fiscal priorities and will prioritise spending very soon.

The hike in diesel prices and the curb on domestic LPG use are the first few steps the Centre has taken in this regard.

Despite the rise in cooking gas price, the under-recovery on domestic LPG during 2012-13 will be Rs 32,000 crore. In the case of diesel, the under-recovery is estimated to be Rs 1,03,000 crore.

Policy outlines of the finance ministry's move would become clear when Prime Minister Manmohan Singh meets Planning Commission officials.

Courtesy: Mail Today