CAduniya.com : CA India Blog

NEW DELHI — India’s government will increase spending and ease some taxes in an effort to stimulate an economy that has been hammered by the global economic slowdown and the recent Mumbai terrorist attacks.

The measures on Sunday came a day after the country’s central bank cut benchmark interest rates in the hope of cushioning the downturn.

The government said it will spend 200 billion rupees ($4 billion) more than previously planned, bringing expenditures to a total of three trillion rupees over a four-month period through end of the fiscal year on March 31.

The office of Prime Minister Manmohan Singh also signaled that more spending increases would be needed in the next budget year.

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