Short-term pain to aid growth

Fiscal consolidation measures recommended by the Kelkar panel will "undoubtedly" have significant short-term impact on incomes and spending of all households.

Fiscal consolidation measures recommended by the Kelkar panel will "undoubtedly" have significant short-term impact on incomes and spending of all households.

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But such short-term pain was need to be factored in for the economy's stronger long-term prospects, the report said.

The report urged the government to expand social protection programmes such as the national rural employment guarantee scheme targeted to protect incomes of the poorest households.