For instance, about 30% of India’s $300 billion annual expenditure goes toward servicing its debt, and 15% on defence purchases. Another 15% — some $45 billion — is spent on subsidized food and fuel for the poor, many of whom live on less than $2 a day. Transferring $15 into each Indian’s bank account every month will cost the government $235 billion.
“The budget has two immediate tasks cut out: assuage the shock received by private consumption from demonetization, and bolster faltering investment demand,” analysts at Crisil Ltd., the local unit of S&P, said in a report this week. Can the government do it and meet its existing fiscal targets? “Short of a miracle, no.”
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(Sourced from agencies, feature image courtesy:thefrustratedindian.com)
