India's budget likely to increase spending to spur growth

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India's budget likely to increase spending to spur growth
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Indian Prime Minister Narendra Modi's government is likely to increase stat...

NEW DELHI - Indian Prime Minister Narendra Modi’s government is likely to increase state spending on infrastructure and offer some tax incentives in its 2020/2021 budget on Saturday, aiming to get growth back up from its lowest in a decade.

India is facing its worst economic slowdown in a decade. The government estimates economic growth this year, which ends on March 31, will slip to 5%, the weakest pace since the global financial crisis of 2008-09. Economists in a Reuters poll predicted the government would set a deficit target of 3.6% of GDP for 2020/21, up from 3.3% targeted for the current year.

Some experts said global trade tensions and the outbreak of coronavirus in China, which has killed more than 200 people so far, pose a new risk to economic recovery by hitting cross-border commerce and supply chains.

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