INDIA: BUDGET AND GROWTH

INDIA’S BUDGET TO PUSH GROWTH, REIN IN INFLATION

Nirmala George (AP)

Time, February 28, 2013

(NEW DELHI) — India‘s finance minister Thursday unveiled a national budget with a promise to put Asia’s third largest economy back on a path of high growth and to trim the fiscal deficit.

Palaniappan Chidambaram told Parliament that attracting foreign investment was crucial to reversing India’s economic slowdown and getting the nation back to fiscal health. Reducing the budget deficit meant the government had no choice but to cut spending.

The minister announced a temporary tax hike for the “super rich.” The 42,800 people with annual income over 10 million rupees ($186,000) would pay the additional tax for one year.

He also hiked taxes on imported luxury cars and yachts, all of which have become symbols of affluence among India’s upper classes.

There was a marginal increase in defense expenditure with the budget for safeguarding the country increased to 2.03 trillion rupees ($37.7 billion). The budget has a provision for 867.4 billion rupees for India, the world’s top arms and defense equipment buyer, to purchase new defense equipment in the next fiscal year.

(...) [article here]