Times of Oman
Price in RO
24ct / gm
22ct / gm
Forex Rates vs R01
Back to Homepage
India unveils 16% rise in annual public spending
February 28, 2013 , 10 : 40 am GST
SAVE THIS ARTICLE
Indian Finance Minister P. Chidambaram (L) poses for media with Minister of State for Finance S.S. Palanimanickam as he arrives at Parliament to present the Union Budget in New Delhi. Photo - AFP
India's finance minister proposed a 16 percent rise in public spending Thursday in his annual budget as he sought to balance demands for pre-election spending with alarm over the public deficit.
Finance Minister P. Chidambaram, presenting the eighth budget of his career, acknowleged that the Indian economy was in a "trough" and that he had been required to cut expenditure in the current financial year.
Thanks to a dose of austerity, he said the government had "retrieved some economic space" which would allow him to increase spending by 16 percent to 16.6 trillion rupees (31 billion dollars) in the 2012/13 year which begins on March 1.
The veteran minister in the Congress government has been attempting a course correction since being reappointed to the finance portfolio in mid-2012 when his leftist and widely criticised predecessor Pranab Mukherjee was elected president.
He has introduced a string of reforms -- opening India to wider foreign investment and cutting deficit-ballooning spending and subsidies -- to avert a damaging credit rating downgrade and boost corporate spending.
"I have been at pains to state over and over again that India at the present juncture does not have a choice between welcoming and spurning foreign investment," Chidambaram told parliament."Foreign investment is an imperative," he added.
India will go to the polls next year and Chidambaram regretted how the economy had slowed sharply during the current term of the government, largely due to falls in domestic confidence and slowing global growth.
"I acknowlege that the Indian economy is challenged, but I am absolutely convinced that with your cooperation, we will get out of the trough and get on to a high growth path," he said.
He satisifed party colleagues clamouring for a rise in spending by allocating large increases in funds for development in rural areas -- where Indian elections are won and lost -- as well as on health and education programmes.
Indian shares were up 0.35 percent or 67.7 points at 19,220.12 in the immediate aftermath of Chidambaram's announcement.
Rate this Article
Rates : 1, Average : 5
Post a Comment
Did you like this section? Leave a comment!
Your Name :
Your Email Address :
Your Comment :
Enter Image Text:
No Comments Posted
Latest in this section
Singapore-led consortium awarded $250m water project
US seeks up to $16b-$18b in water-pollution fine from BP
ECB executive sees negative inflation rate in euro zone in months ahead
Diversification vital for Oman, GCC states
Deposits at commercial banks rise 14 per cent in October
TOP RATED ARTICLES
Back-breaking bags a bane for schoolchildren in Oman
HM The Sultan condoles Pakistani President
Cricket: New Zealand beat Pakistan in fourth One-day International, level series
Peshawar attack: Oman, Indians express solidarity with Pakistani community
Times News Service, ONA
Peshawar attack: Prayers held in Oman for Pakistan terror victims
Times News Service
More in News
Sri Lanka restores blood-soaked railway to Tamil heartland
Bucharest 'khans' reborn after decades of neglect
More than just a moustache - Adolf Hitler vs Charlie Chaplin
Urban gardens greening Berlin rooftops, airfield
Tips for writing a good article
More in Features
Confronting an ugly killer
CIA pursued the wrong targets
Driving Ukrainians into Putin’s arms
Humanitarian impact of nuclear weapons in focus
Food security: A lot achieved and scope to do a lot more
More in Columns
Copyright © 2012 Muscat Press & Publishing House SAOC. All rights reserved. Times of Oman is not responsible for the content of external internet sites.
For reprint rights contact:
TOO Online Editorial