Pranab meets ministry financial advisors on austerity steps

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By Shahid K. Abbas, edited by Madhumita Sen Choudhury/NewsWire18

A meeting of senior government officials on Centre's austerity drive today resolved to focus expenditure on priority areas rather than non plan sector, Sutanu Behuria, financial advisor to the commerce ministry said. The meeting was chaired by Finance Minister Pranab Mukherjee. "It was decided to keep expenditure under control and the focus was to keep fiscal deficit under control," Behuria told reporters after the meeting. The government had earlier directed all ministries to go for a 5-10% cut in non-plan expenditure to check wasteful expenses and divert resources to productive rural schemes to combat drought impact. When asked if there will be any more austerity measures, the official said, "No, but we have been advised not to create a situation where we have to resort to additional borrowing." Behuria said pre-budget consultations with ministries will begin around November.

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