Narendra Modi to focus on jobs, incomes in first budget after election setback
Indian Premier Narendra Modi aims to reconnect with voters through the upcoming federal budget, which will be presented next week. Economic analysts suggest that the budget may include measures to boost employment and income levels, addressing the uneven economic growth and surging food prices.
In the recent general election, Modi's party failed to secure a majority, as concerns over jobs and the high cost of living overshadowed his Hindu nationalist campaign. To maintain his position, Modi is relying on support from the Telugu Desam Party (TDP) and Janata Dal (United), who control the states of Andhra Pradesh and Bihar, respectively.
Finance Minister Nirmala Sitharaman will present the government's first budget of Modi's third term on July 23, revealing potential shifts in economic policies.
A record 25 billion US dollar surplus transfer from the central bank provides the government with additional spending flexibility without increasing the fiscal deficit, which is expected to remain at 5.1% of the gross domestic product, according to most economists surveyed.
In recent years, the government has nearly doubled its spending on long-term infrastructure projects to stimulate growth and create jobs. This year, it plans to allocate 11 trillion Indian rupees ($131.61 billion) to such projects, with some economists anticipating further emphasis on manufacturing in the budget.
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