New Congress-led government pledges to help the poor while keeping up momentum for economic reforms
From water to jobs, India's new government has unveiled billions of dollars in spending for the poor in an expansionary first budget that taxes the rich but does little to tackle a nagging deficit.
The fledgling Congress-led, communist-backed government trod a delicate path yesterday to keep its election promise of a new deal for farmers, the unemployed and the rural poor, while raising limits on foreign investment to keep economic reforms on track.
Finance Minister Palaniappan Chidambaram announced a 100 billion rupee (HK$17 billion) increase in government expenditure directed at providing more agricultural credit, diversifying production, and improving rural infrastructure and water supplies. He also outlined new spending on education, housing and a jobs scheme for the poor.
'In our scheme of things, the poor must get the first chance to benefit from government funds,' he said.
The Communist Party of India, which gives crucial support to the government, attacked the budget as a 'bonanza for foreign investors, big corporates and consumers' while ignoring 'toiling Indians'.