India's Modi focuses on jobs creation in first budget after winning polls
Indian Prime Minister Narendra Modi plans to raise spending to create more jobs and spur economic growth
NEW DELHI — Indian Prime Minister Narendra Modi’s newly formed government presented an annual budget to Parliament that raises spending to generate more jobs and spur economic growth, while aiming to appease coalition partners it needs to stay in power.
In her budget speech Tuesday, Finance Minister Nirmala Sitharaman said the government is focused on driving domestic growth through jobs, training and small businesses.
India's inflation rate is stable and moving toward the government's 4% target, she said, while the economy grew at a sizzling 8.2% rate in the last fiscal year.
“India’s economic growth continues to be the shining exception and will remain so in the years ahead,” Sitharaman said.
More than a decade after he first took office as prime minister, Modi is under pressure to generate more jobs to help sustain growth.
The proposed budget includes a $24 billion package for job creation over the next five years and raises spending on loans for small and medium-size businesses. It allocates $18 billion to support agriculture and farm technology, such as climate-resilient seed varieties.
It also would raise spending, to $133 billion, on construction of thirty million homes for the poor, schools, airports, highways and other infrastructure. The budget would cut taxes on big corporations and allocate more funds to two states, Andhra Pradesh and Bihar, that are governed by the Modi government’s biggest coalition partners.
The government plans to build new airports, medical colleges and sports and tourism facilities in eastern India's Bihar state, which is ruled by the Janata Dal (United) party.
Sitharaman also
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