Spending Plan: India hikes defence budget by 5.3%

India unveils a surge in government spending by imposing new taxes on large companies to fund a dash for growth.

NEW DEHLI: India unveiled a surge in government spending on Thursday, despite expectations of an austerity budget to shore up its finances, imposing new taxes on the rich and large companies to fund a dash for growth ahead of an election due by next year.

Chidambaram thanked the Indian defence minister for being ‘most understanding’ about the cuts after which the defence ministry will now receive a mere 5.3% increase in comparison to last year’s 17% increase.

Published in The Express Tribune, March 1^st, 2013.