The Kelkar Committee, which was appointed by Finance Ministry to suggest a roadmap for fiscal consolidation, has suggested immediate hike in fuel prices and complete deregulation of diesel prices by start of 2014-15 fiscal.
The Kelkar Committee has recommended sharp reduction in subsidies on petroleum, food and fertiliser, which the government said was contrary to its policy of protecting the poor.
According to the report, Indian economy is headed for a "perfect storm" worse than 1991 because government's cashflow by March 2013 is threatening to be Rs 110,000 crore (Rs 1,100 billion) more in the red than the expected Rs 500,000 crore (Rs 5,000 billion).
Finance Minister Arun Jaitley presented the Budget in Parliament on Saturday.
Credibility of fiscal promises is a virtue that no finance minister can afford to lose.
The fiscal deficit in current fiscal has been estimated at 3.9%.
Budget has laid emphasis on increasing social spends
The IMG meeting will be convened shortly.
'Success will require political skill, not just economic expertise'
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