NEW DELHI: India plans to raise spending on infrastructure in its annual budget next week to set the economy on a firmer footing, but fiscal constraints leave little chance of concessions for households hurting from the pandemic, officials said.
Asia's third largest economy is estimated to expand 9.2% in the fiscal year that ends in March, following a contraction of 7.3% in the previous fiscal year.
Yet private consumption, which makes up nearly 55% of GDP, is below pre-pandemic levels amid rising levels of household debt, while retail prices have swelled nearly a tenth since the coronavirus outbreak began in early 2020.
The February 1 budget comes days before the start of elections in five states, including the most populous, Uttar Pradesh, which could spur Finance Minister Nirmala Sitharaman to promise higher rural spending and subsidies on food and fertiliser.
Read more at http://timesofindia.indiatimes.com/articleshow/89146248.cms
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