Finance Minister Arun Jaitley announced India's new budget plan on Thursday, which aims to increase growth from 5 percent to 7-8 percent in the next three years.
The announcement marks one of the first significant economic prescriptions from Prime Minister Narendra Modi and his Hindu nationalist Bharatiya Janata Party, who came into power in May with the most decisive electoral victory in three decades.
"We shall leave no stone unturned in creating a vibrant and strong India," Jaitley told reporters ahead of presenting the the much anticipated budget on Thursday.
The highlights of the plan includes increased spending on infrastructure projects, lifting the cap on foreign investments, cutting government debt and job creation. Jaitely indicated that the government would reduce spending by overhauling subsidies on food, fuel, and fertilizer, but withheld specifics on the size and scope of the cuts. He also plans to reduce the national budget deficit to the previous administration's goal of 4.1 percent of gross domestic product by the end of the year.
Prime Minister Modi campaigned on the promise to cut the populist subsidies, which have increased the budget deficit and led to the lowest growth rates in years. Some were disappointed that the budget didn't go farther in tackling runaway inflation, spurring economic growth and cutting government programs.