Austerity measures will have bearing on subsidies: CPI(M)

NEW DELHI: Government's plans to cut non- plan expenditure by 10 per cent as part of an austerity drive would lead to slashing of subsidies on welfare measures for the people, CPI(M) today said and opposed such a move.

"These austerity measures do not involve only a ban on first air travel or meetings in five star hotels, but subsidies will bear the main brunt of the cuts. This would mean cut in subsidies meant for the people and welfare measures," the party Politburo said in a statement here.

Asking the government to "explain under what heads these cuts were being made", the CPI(M) said it would oppose any cut in expenditure on subsidies to the people and welfare measures.

The major Left party's statement came a day after the Finance Ministry said in a statement that "no re-appropriation of funds to augment the non-plan heads of expenditure on which cuts have been imposed, shall be allowed during the current fiscal."

Government's non-plan expenditure deals with outlays on subsidies, interest payment, salary, among others.