India's US$16b wage hike may eat into capital spending
New Delhi
A US$16 billion pay rise for India's public servants and costly food and farm programmes could force the country's finance minister to cut capital spending in its annual budget, officials and economists say.
The spending pressure on Finance Minister Arun Jaitley threatens to worsen imbalances in India's US$2 trillion economy as consumption outpaces investment, undermining Prime Minister Narendra Modi's promise of better jobs for its 1.3 billion people.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Fed officials mull if rates are high enough as inflation expectations jump
US bill to restrict WuXi AppTec, Chinese biotechs revised to give more time to cut ties
UN General Assembly backs Palestinian bid for membership
US chip workers are likely to quit jobs, worsening labour shortage
India's industrial output up 4.9% year-on-year in March
Pandemic treaty talks end without agreed text, next step up for debate