The Indian government will start an “austerity” drive to cut spending, including a reduction in foreign tours for officials and a ban on the purchase of new vehicles, in a bid to rein in the fiscal deficit, the World Bank press review reported Wednesday.
India aims to limit its fiscal deficit to 4,4 percent of gross domestic product, in the current fiscal year that began April 1, compared with around 4,8 percent of GDP last fiscal year.
Analysts said the austerity steps may partly offset the expected revenue loss to the government from recent cuts in tariffs and excise duties on a range of products, introduced to rein in inflation.
