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India Eyes Spending Cuts

India Eyes Spending CutsIndia Eyes Spending Cuts

India could be forced to cut spending on key infrastructure such as railways and highways as lower-than-expected tax collections and sluggish growth have upset the government’s budget calculations, two finance ministry officials said on condition of anonymity, Reuters reported. Tax receipts were about $7.8 billion in July—a little over half the monthly target—mostly because millions of firms failed to comply with the new Goods and Services Tax system that harmonizes all state and federal sales taxes. The big worry is that economic growth, which slipped to a three-year low in the last quarter, could take a further hit if the public spending that largely underpinned expansion were to be slashed.

 

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