Indian PM Modi’s budget focuses on jobs, rural development and middle class By Reuters

NEW DELHI (Reuters) – Indian Prime Minister Narendra Modi’s first post-election budget unveiled on Tuesday plans to raise spending to create jobs and provide relief to the middle class, Finance Minister Nirmala Sitharaman said.

The government will allocate 2 trillion rupees ($24 billion) for job creation over the next five years, Sitharaman said.

Modi’s Hindu nationalist Bharatiya Janata Party (BJP) failed to secure an outright majority in the general election last month, making it dependant on allies to form a government for the first time since he swept to power a decade ago.

Here are the highlights of the budget:

JOB CREATION

* Budget proposes to allocate 2 trillion rupees for job creation over 5 years

* Allocates 1.52 trillion rupees for agriculture and allied sectors

*To launch 3 schemes for employment-linked incentives

INFLATION

* Finance minister says inflation remains low, moving toward 4% target

* Proposes to take supply-side measures to contain food inflation

* Minister says global economy still in the grip of policy uncertainties

ECONOMIC GROWTH

* To allocate 150 billion rupees as special financial support through multilateral development agencies to Andhra Pradesh state, ruled by Modi’s biggest ally TDP

* Credit support to small and medium businesses during the stress period

* Proposes to support setting up of 12 industrial parks

* Proposes to enhance small loans to 2 million rupees for small and medium businesses

RURAL DEVELOPMENT

* Provision of 2.66 trillion rupees ($32 billion) for rural development

* Proposes state aid for 30 million affordable housing units in urban and rural areas

($1 = 83.6310 Indian rupees)