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LATEST NEWS UPDATES | Roads before welfare: Modi faces dissent over spending shakeup

Roads before welfare: Modi faces dissent over spending shakeup

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published Published on May 19, 2015   modified Modified on May 19, 2015
-Reuters

NEW DELHI: As Prime Minister Narendra Modi completes one year in office, his cuts in federal welfare spending on the poorest of India's 1.25 billion people are coming in for sharp criticism, including from within his cabinet.

In a break with India's socialist past, Modi has saved money on federal social and subsidy expenditure and pumped it into an infrastructure stimulus he hopes will trigger a spurt in economic growth.

The government says lower welfare spending will be compensated for by giving state governments a larger allocation of tax revenues to spend as they choose. But state chiefs, government officials and a cabinet minister have warned that the spending shakeup endangers the country's most vulnerable.

Maneka Gandhi, women and child development minister in Modi's cabinet, has said the impact of the policy will borne by India's estimated 300 million poor.

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FirstPost.com, 19 May, 2015, http://www.firstpost.com/fwire/roads-before-welfare-modi-faces-dissent-over-spending-shakeup-reuters-2251150.html


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