India's US$16b wage hike may eat into capital spending
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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.
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