India's new government has introduced a reform-minded budget Thursday.
In the budget, the Indian government vows to lift economic growth to rates of 7% to 8% by promoting manufacturing and infrastructure and overhauling populist subsidies, reports AP.
The budget for the fiscal year ending March 2015 is being closely watched as an indicator of whether Prime Minister Narendra Modi's government will act quickly to deliver on promises to revive stalled economic growth.
Finance Minister Arun Jaitley outlined the broad strokes of the plan, which he said would be a departure from the "mere populism and wasteful expenditure" that has dragged down Asia's third-largest economy.
He said it would be daunting to keep the budget deficit for the year at 4.1% of gross domestic product, as targeted by the previous government, and it might end up at 4.5%. In the two subsequent years it is forecast to fall to 3.6% and 3% of GDP respectively.
He indicated those reductions would involve overhauling expensive subsidies for food, fuel and fertilizer that cost India's government some $40 billion a year. He gave no details other than saying the subsidies would be "more targeted."