The Indian government will have to rein in spending and cut subsidies to meet its fiscal deficit target, the country’s finance minister said on Monday, underlining that an austerity drive will not be blown off course by an election due next year.
P. Chidambaram told Reuters ahead of a trip to the United States – where one stop will be to woo investors on the West Coast – that he will not allow the deficit to cross a “red line” set at 4.8 percent of gross domestic product this fiscal year.
“We’ve issued austerity instructions, it will bring us some savings,” he said.
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