Union Government may cut spending on Road projects

Union Government will put welfare, defense and road projects on the chopping block in a last ditch attempt to meet the tough fiscal deficit target by March, risking short-term economic growth and angering cabinet colleagues.

The cuts will reduce spending by about Rs 1.1 trillion (US$20.6 billion) in the current financial year, about 8 percent of budgeted outlay, or roughly 1 percent of estimated gross domestic product