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Modi Budget Relies on India Revenue Boost as Subsidies Untouched

Prime Minister Narendra Modi’s two-month-old government unexpectedly kept India’s budget deficit target unchanged, adding pressure on him to boost revenues to pay for food and fuel subsidies.

The gap will narrow to 4.1 percent of gross domestic product in the year through March 2015, as projected by the previous administration, Finance Minister Arun Jaitley said while presenting Modi’s first budget in New Delhi. The target is a seven-year low from the previous year’s 4.5 percent.