India declares short-term budget until May elections

India’s finance minister unveiled on Thursday a short-term budget to meet government expenditures until national elections are held in May, saying it will boost spending on infrastructure projects, build homes for poor villagers, and cut the fiscal deficit by reducing subsidies.

Nirmala Sitharaman announced plans to raise skills for young people and boost small and medium enterprises to create jobs.

Prime Minister Narendra Modi’s government faces criticism for not creating enough jobs despite offering billions of dollars in subsidies to boost manufacturing.

National elections due in May have generated expectations of populist giveaways to woo voters. The short-term budget is mostly free of bigspending new programs.

Modi is leading the race, with his Hindu nationalist party expected to win a third straight term because of his immense popularity and a badly divided opposition led by the Congress party.

The short-term budget must be approved by Parliament. A full-year budget will be presented by the new government after it assumes power.

Sitharaman said the government plans to build 20 million affordable houses over the next five years if voted back to power, adding to the 30 million already built.

The government allocated $145 billion for infrastructure projects in the short-term budget.

She said government policies would focus on the development and empowerment of the poor, farmers, youth and women.

Sitharaman also announced the government will strengthen the electric vehicle ecosystem by supporting the manufacture of EVs and building charging stations, as well as encouraging a greater adoption of electric buses for public transport.

She did not specify the cost or timeline for the project. India expects that its economy will grow by about 7 percent during the next fiscal year despite global headwinds and geopolitical risks, and that it expanded by 7.3 percent this fiscal year, which ends on March 31.