Oil, fertiliser subsidies may be cut: FM

The government on Tuesday said it is looking at steps to cut subsidy on fertiliser and oil sale with an aim to cutting non-plan expenditure and contain fiscal deficit.

Addressing the economic editors' conference, Finance Minister Pranab Mukherjee [ Images ] said that the fiscal deficit would be rolled back to 5.5 per cent in the next financial year from 6.8 per cent in 2009-10. However, he said stimulus packages given to industry last year would continue.

He said a few more PSUs have been identified for disinvestment after the overwhelming response to NHPC and Oil India [ Images ] IPOs. Market capitalisation of both these companies increased significantly after the public offer.