British spending cut not to impact development aid to India

British development aid to India would not be affected by the severest austerity measures announced by the coalition government in the UK, a senior official of the British High Commission indicated here.

"While the consultations are on, the British Government would like to keep the development aid at the present level," he said.

India receives development aid of about 300 million pound sterling (Rs 2,100 crore) which goes into primary health and education, climate change and small industries in Madhya Pradesh, Orissa and Bihar, the official said.

British Chancellor of Exchequer George Osbourne announced the spending cuts of pound sterling 81 billion, the steepest in peace times, for the next four years.

The UK Government has done a comprehensive spending review in the wake of "unsustainable" public sector fiscal deficit - 11 per cent of the country's Gross Domestic Product.

While budget allocations of several key departments have been cut drastically, the outlays of the International Development wing have gone up by 37 per cent - a development which augurs well for the development aid recipient countries like India.

 A particular emphasis has been given on reducing the budget for the welfare schemes for the British citizens themselves. The British government seeks to save 18 billion pound sterling from welfare budgets by 2014-15.