India Seeks to Carve Out $12 Billion to Cool Inflation
- India may divert funds to cushion price-rise impact on poor
- Lower import duties, cheaper loans, fuel tax cuts are options
Narendra Modi
Photographer: Prakash Singh/BloombergThis article is for subscribers only.
Indian officials are considering a plan to reallocate as much as 1 trillion rupees ($12 billion) from the budgets of various ministries to contain a surge in food and fuel costs without imperiling the federal deficit target, according to people familiar with the matter.
Prime Minister Narendra Modi will take a decision in the coming weeks, which could include lowering taxes on local gasoline sales and easing import tariffs on cooking oil and wheat, the people said, asking not to be identified as the discussions are private.