Fiscal Consolidation

Highlights

* Fiscal Deficit is expected to be 10% of GDP - both Central and State Governments

Targeted

* Fiscal deficit at 5.1% Revenue deficit 6.3% - have been achieved

Proposals on expenditure Management

* User charges for services provided by government to be revised

* Postal rate will be revised to contain postal deficit

* Recruitments would be subjected to a maximum 1% of the total Government staff

* Leave Travel Concession will be suspended for two years

* Downsizing in 6 departments - Economic Affairs, Coal, Information and Broadcasting, Heavy Industry, Public Enterprises and department of SSI industries to be implemented by July 31st'01

* 3 secretary and 2 joint secretary level positions to be axed by July 31st '01