The Kelkar Committee set up by the Government to suggest measures for fiscal consolidation has recommended phased elimination of subsidies.The Committee report, which has been uploaded by the Union Finance Ministry on its website for informed debate, suggests elimination of subsidies in diesel, Kerosene, cooking gas, petrol and foodgrains supplied through ration shops to deal with the deteriorating fiscal situation.Secretary in the Department of Economic Affairs Arvind Mayaram said in New Delhi that the Committee report was under consideration of the Government and it had not taken a view on it so far. He said some recommendations appeared contrary to the declared objective of the government.AIR correspondent reports that Finance Minister P Chidambaram has constituted the panel to assist the Centre in formulating the path of fiscal consolidation. Headed by former finance secretary Vijay Kelkar, the Committee has submitted its report on September 3. The report has suggested that half of diesel subsidy should be eliminated by March 2013 and the rest by fiscal 2014. It recommended that kerosene price should be raised by Rs 2 rupees per litre and subsidy on it needed to be reduced by one-third by fiscal 2015. It also suggested phased elimination of subsidy on LPG in the next four years. The panel has also warned that High fiscal deficits tend to heighten inflation, reduce room for monetary policy stimulus, increase the risk of external sector imbalances and dampen private investment, growth and employment.