15% Budget cut likely for some ministries

The Finance Ministry is believed to have suggested to some ministries a reduction of up to 15 per cent in their annual budgets for the current financial year. The move is aimed at cutting the fiscal deficit, which the Centre wants to contain at 4.1 per cent of GDP, according to official sources. Fiscal deficit during the last financial year was 4.5 per cent. Social sector ministries, which have the largest social spending on schemes such as MNREGA, are uncomfortable with this move. PTI