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StaffCorner

22 Feb, 2016 09:07 PM

Pay Commission Bonanza May Force Jaitley To Cut Capital Spending: NDTV Profit

Pay Commission Bonanza May Force Jaitley To Cut Capital Spending: NDTV Profit A Rs. 1.1 lakh crore pay rise for government employees and costly food and farm programmes could force Finance Minister Arun Jaitley to cut capital spending in its annual budget, officials and economists say.

The spending pressure on Jaitley threatens to worsen imbalances in India's $2 trillion economy as consumption outpaces investment.

A populist budget, ahead of assembly elections in four states this year, could stoke inflation even as structural measures such as Prime Minister Narendra Modi's proposed tax and labour reforms look less likely.

It could also eat into capital spending needed for railways, roads, ports and power projects, seen as vital to India's integration into the global economy.

Read full @ NDTV Profit



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