India to Tackle Deficit but No Fix Offered for Slowing Economy

MUMBAI — India’s finance minister said Friday that the country would raise taxes and slow growth in spending in an effort to lower its swelling budget deficit, but analysts and investors said they were disappointed that he did not announce measures to bolster the country’s slowing economy
In an annual budget speech to Parliament, the minister, Pranab Mukherjee, said India would reduce its budget deficit to 5.1 percent of gross domestic product in the fiscal year that starts in April, down from an estimated 5.9 percent for the current year, by relying heavily on increases in sales taxes and import tariffs on cars, gold and other items. The government also proposed a change in tax laws that could impose billions of dollars in capital gains taxes on foreign investors retroactively to 1962.

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By VIKAS BAJAJ ©2012 ALL RIGHTS RESERVED THE AUTHOR(S) AND THE PUBLISHER

Published: March 16, 2012