India’s Modi Cuts Social Spending Even With Local Polls Nearing

  • Modi’s government bets on economic rebound to create jobs
  • Rural employment program, food, fertilizer subsidies see cuts

Narendra Modi

Photographer: Ian Forsyth/Getty Images

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Prime Minister Narendra Modi’s government plans to spend more on infrastructure projects while holding back on social safety nets. It’s betting a world-beating economic rebound will create jobs and plug some of India’s inequalities as the latest virus wave recedes.

It’s an unusual move for the ruling Bharatiya Janata Party ahead of a slew of state elections starting next week, amid simmering anger over unemployment and rising living costs. There’s also the farmers agitating for higher crop support prices.