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LATEST NEWS UPDATES | Govt may slice subsidy bill by $8 bn in Budget 2015-16

Govt may slice subsidy bill by $8 bn in Budget 2015-16

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published Published on Feb 21, 2015   modified Modified on Feb 21, 2015
-Reuters

 

Subsidy cuts may still fail to impress investors: Experts

New Delhi: India may slash its food and fuel subsidy bill by about $8 billion in next week's budget, two sources said, but despite the impressive headline, the cut is not as radical as free market champions had hoped for in Prime Minister Narendra Modi's first full budget.

Most of the 20 per cent cut in the budget for subsidies results from lower global oil prices rather than structural changes, with the government's appetite for reform tempered by a heavy local election defeat in New Delhi this month.

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The Hindu Business Line, 20 February, 2015, http://www.thehindubusinessline.com/economy/subsidy-cuts-in-modis-budget-may-fail-to-impress-investors-experts/article6916814.ece?homepage=true


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