NEW DELHI: The minister of finance could need to slice a minimum of Rs 20000 large integer ($3.2 billion) from government payment to stop a budget blow-out, that might threaten to send the country’s credit rating into “junk standing, 2 ministry officers aforementioned.
P Chidambaram can create a final decision on whether or not to travel ahead with the cuts at the tip of october, once he gets an update on revenue collections, the officers, UN agency have direct data of the method, said.
Chidambaram, UN agency last year oversaw cuts price over Rs one trillion, is progressing to forestall the allow the yr to March 2014 from stretching on the far side a deficit target of four.8 per cent of gross domestic product.
With oil subsidies up by concerning Rs 30000 large integer, the govt could have to be compelled to cut expenditure by around Rs 20000 large integer additionally to usual savings of around Rs 30000 large integer at the tip of the year, aforementioned a senior finance ministry official.
The government conjointly introduced supported grain to sixty seven per cent of the one.21 billion population and has set in motion a considerable revision in salaries and pensions for pretty much eight million government employees.