India may reduce spending target by 40% for FY25, Economic Times reports via Reuters.

MUMBAI (Reuters) – India is likely to reduce its fiscal and monetary policy target by 40% for 2024-25 in the state budget to be presented next month, The Economic Times newspaper reported on Saturday. while the planned sale of state-run firms continues. the number of obstacles.

The government may revise the target to below 300 billion rupees ($3.47 billion) from the original 500 billion rupees, the newspaper said, citing people who know about negotiations.

The government may set a target of around 450 billion to 500 billion rupees for the next financial year, as it aims to complete. IDBI Bank (NS:) transaction and raise its monetization proposal, the report said.

The Finance Ministry did not immediately respond to a Reuters email seeking comment.

The Government of India, which owns 45.48% in IDBI Bank, is state-owned Life Insurance (NS:) Corp of India which owns 49.24%, together plans to sell 60.7% of the loan. The sales process was first announced in 2022.

Prime Minister Narendra Modi’s administration has departed from the usual practice of setting a sales target in its budget presented last year.

Modi’s ambition to privatize firms has taken a back seat due to regulatory hurdles, complex decision-making, political considerations and quality assurance issues, but his government has given more sales to than any previous system.

The government has collected 86.25 billion rupees from disinvestments so far this fiscal year.

The government will continue to reduce its funding to other organizations through sales cuts, the report added.

($1 = 86.5710 Indian rupees)