India budget to promote reforms

Indian Prime Minister Narendra Modi’s government will release its annual budget on Sunday, with reforms expected to strengthen the economy and cushion it from rising uncertainties, including steep U.S. tariffs and broader geopolitical tensions.

But Finance Minister Nirmala Sitharaman, who presents the budget for the next fiscal year at 11 a.m. (0530 GMT), will have to restrain spending as a share of gross domestic product, particularly after tax cuts are expected to reduce revenue by 1.5 trillion rupees ($16 billion) for ‌this fiscal ‌year.

India’s deficit target for the ‌12 ⁠months ​through March ‌is 4.4% of GDP.

“The nation is moving away from long-term problems to tread the path of long-term solutions. Long-term solutions provide predictability that fosters trust in the world,” Modi said on Thursday before the government’s economic survey forecast growth of between 6.8% and 7.2% for the fiscal year starting ⁠in April.