India Budget boosts spending to drive economy

New Delhi

EYEING an election next year, India's government announced massive spending for rural areas and projected economic growth above 8 per cent in its annual Budget on Thursday.

The proposed expenditure and revenue plan won broad approval from economists, though bond and share markets fell.

Delivering the last full annual Budget before an election that will fall due by May next year, Finance Minister Arun Jaitley allocated 14.34 trillion Indian rupees (S$296 billion) for rural infrastructure spending and extra support for farmers.

He also announced plans to introduce "the world's largest government funded health care programme", saying it w…