NEW DELHI (Reuters) - India's finance minister P. Chidambaram is putting welfare, defence, atomic energy and road projects under the knife in a final attempt to hit a tough fiscal deficit target by March, risking short-term economic growth and angering cabinet colleagues.
The cuts will reduce spending by about 1.1 trillion Indian rupees (13 billion pounds) in the current financial year, some 8 percent of budgeted outlay, or roughly 1 percent of estimated gross domestic product, two senior finance ministry officials and a senior government adviser told Reuters.