The government may cut the size of the budget for the ongoing fiscal year while the upcoming one is expected to see a marginal spike as the country’s spending capacity has remained under stress.

The austerity stance, driven by the widening gap between incomes and expenses, is set to persist since the government continues to struggle to rein in inflation and reduce pressure on foreign currency reserves.

A meeting of the Fiscal Coordination Council will discuss the draft outlays for the revised budget for 2023-24 and the new budget for 2024-25 today.

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