$ 1.4 Trillion Spending on INDIA
According to pledge or promises of Prime Minister’s Mr. Narendra Modi, the Indian economy set boost if the PM following his key campaign promises.
The Bhartiya Janta Party pledge the spend $1.4 trillion in road construction and infrastructure. They also promise to pay cash in hand to the farmers. They more focus on increasing production and two times export increase. According to PM promises they cut tax on the middle-class person and resonated with voters and who gave the majority to BJP in Parliament.
Indian economy needs stimulus. Consumer spending has taken a knock as a crisis among shadow banks curbed lending. Unofficial figures show unemployment in the marketplace due to slow investment Economists are forecast the growth of the economy next three months 6.5% that is very slow since 2017.
Immediate challenge for Modi's finding money to pay in cash. The government makes widened budget deficit from March to 2020 to 3.4% of gross domestic product. With less revenue, the government borrowing more from the central bank and seeking to extract additional capital. Any further stretch in the fiscal deficit would jeopardize the nation’s credit rating.
Fitch Ratings Ltd. said on Thursday improving the nation’s weak government finances will be crucial for the new administration. Fiscal consolidation stalled under the BJP in recent years and its campaign promise to support farm incomes has added to spending pressure, it said. “Given that there is limited fiscal space it is hard to see them meeting those targets,” Shilan Shah said that, senior India economist at Capital Economics Ltd. in Singapore. “But if they are partially fulfilled, it provide some boost to growth.”
The BJP's target to spend 100$ million on infrastructure by 2014. It is very huge promise and commitment that increase the growth of infrastructure and railway.