India to spend $40 billion on farm sector to lift wobbly economy; fiscal deficit slips

NEW DELHI - India’s government said on Saturday it would inject nearly $40 billion into the sprawling farm sector and billions more into a federal water scheme to get broader economic growth back up from its lowest in a decade.

For fiscal 2020/21 Sitharaman set the fiscal deficit at 3.5 percent as it boosts state funding to shore up a sagging economy that has put pressure on Prime Minister Narendra Modi, who is already facing a public backlash over a new citizenship law seen as socially divisive.` Sitharaman said 2.83 trillion rupees will be allocated for agriculture and allied activities including helping farmers set up solar power generation units as well as establish a national cold storage to transport perishables.She also said the government will spend $50.65 billion on a federal water scheme to address the challenges facing one of the world’s most water stressed nations.

In its annual economic report, released on Friday, the government predicted that growth would rebound to 6.0% to 6.5% in the fiscal year beginning April 1, but warned that it may have to exceed its deficit target to revive growth. Some economists said global trade tensions and the outbreak of coronavirus in China, which has killed more than 250 people so far, pose a new risk to economic recovery by hitting cross-border commerce and supply chains.

manojgulnar aftabahmed00 MayankBhardwaj9 In parts of India a chicken and a goat = a farm. Get a grip

manojgulnar aftabahmed00 MayankBhardwaj9 Yea they'd say that. But how much of it, you know, goes to the actual farmers who, you know, do the ACTUAL farming?

manojgulnar aftabahmed00 MayankBhardwaj9 When the government is cashless, party in power is in cash surplus. Economy is clueless.

manojgulnar aftabahmed00 MayankBhardwaj9 Meanwhile...American farmer SUICIDE is at an all time high. Thank TRUMP.

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India must spend — not cut taxes — to boost ailing economy, says professorIndia grew by just 4.5% in the three months that ended in September — it was the slowest expansion in six years for Asia's third-largest economy. Isn't 4.5% a great growth rate? I mean, we didn't grow that much. More like perfesser.
Source: CNBC - 🏆 12. / 72 Read more »