NEW DELHI: India’s Finance Minister Arun Jaitley on Friday sought parliament’s approval to boost budget spending by $4bn in the current fiscal year, sources reported.
High levels of non-performing assets in state-run banks have made it hard for the government of Prime Minister Narendra Modi to revive investment or accelerate growth in Asia’s third largest economy.
Jaitley plans to provide 250bn rupees ($3.90bn) each in the current and next fiscal year, while 200bn rupees would be provided during 2017-18 and 2018-19, the finance ministry said in a statement.
Having allocated $1.24bn for the state banks in its February budget, the finance ministry aims to inject an extra $1.9bn, if parliament approves. Later, it will seek an additional $50bn rupees for capital infusion into banks.
The country’s top six banks — State Bank of India (SBI), Bank of Baroda, Punjab National Bank, Bank of India, Canara Bank and IDBI will get $1.6bn, the ministry said.