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Market Chatter: India Reviews Spending Cuts as Higher Oil Prices Raise Subsidy Burden

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India's government is reviewing possible spending cuts in parts of the federal budget as rising oil prices increase subsidy costs and threaten Indian government's fiscal consolidation roadmap, Bloomberg reported, citing officials familiar with the matter.

The options have been discussed in recent meetings with Finance Minister Nirmala Sitharaman over the past month, though no final decision has been taken, the officials told Bloomberg.

Capital expenditure and defense spending are unlikely to be reduced, the report noted. Officials are rather examining areas such as water resources and state loans for potential trimming, it added.

The Finance Ministry did not respond to Bloomberg's request for comment, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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