NEW DELHI (Reuters) - India wants to reduce its subsidy bill, estimated at near two percent of its gross domestic product, to cut down state expenditure and transfer funds to other sectors, the finance minister said.
“Subsidies for the poor will remain, but we intend to rationalise it,” Arun Jaitley said at an event in Davos on Thursday.
“Elimination of subsidies in India, where one-third of the people are still living in poverty conditions, is not possible, is not desirable.”
Jaitley will present his first full-year budget for 2015/16 fiscal year on Feb. 28.
Reporting by Manoj Kumar; Editing by Malini Menon