Tax & Spend
Modi Faces Budget Pressure as Second Ally Seeks $3.6 Billion Aid
- BJP reliant on coalition parties after losing majority in vote
- Funding demands are equal to half of India food subsidy budget
Narendra Modi
Photographer: Prakash Singh/BloombergThis article is for subscribers only.
Prime Minister Narendra Modi’s second-biggest ally is demanding 300 billion rupees ($3.6 billion) from India’s federal budget this year to help fund projects in Bihar state, according to people familiar with the matter, a test for the coalition government.
The Bihar government, which is led by Janata Dal (United)’s Nitish Kumar, made the request during a pre-budget meeting with Finance Minister Nirmala Sitharaman last month, the people said, asking not to be identified because the discussions are private.