FM asks states to follow fiscal consolidation after recovery

Finance Minister Pranab Mukherjee on Wednesday asked state governments to get back to fiscal consolidation when the global economy returned to the recovery path.

“It is expected that once the global economy begins to recover, the state governments would re-affirm their commitment to fiscal responsibility and be back onto the path of fiscal consolidation,” he said at a meeting between Finance Secretary Ashok Chawla and financial commissioners, principal secretaries, and finance secretaries of the states and Union Territories.